Defense Transportation Journal by Defense Transportation Journal

The Official Publication of the National Defense Transportation Association

October 2019

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October 2019

FEATURES October 2019 • Vol 75, No. 5 PUBLISHER

VADM William A. Brown, USN (Ret.) MANAGING EDITOR

Sharon Lo | slo@cjp.com CIRCULATION MANAGER

Leah Ashe | leah@ndtahq.com PUBLISHING OFFICE

NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761

GRAPHIC DESIGN & PRODUCTION MANAGER

Debbie Bretches

ADVERTISING SALES DIRECTOR

Bob Schotta bschotta@cjp.com

ADVERTISING & PRODUCTION Carden Jennings Publishing Co., Ltd. Custom Publishing Division 375 Greenbrier Drive, Suite 100 Charlottesville, VA 22901 434-817-2000 x330 • F 434-817-2020

Defense Transportation Journal (ISSN 0011-7625) is published bimonthly by the National Defense Transportation Association (NDTA), a non-profit research and educational organization; 50 South Pickett Street, Suite 220, Alexandria, VA 22304-7296, 703-751-5011. Copyright by NDTA. Periodicals postage paid at Alexandria, Virginia, and at additional mailing offices. SUBSCRIPTION RATES: One year (six issues) $40. Two years, $60. Three years, $75. To foreign post offices, $45. Single copies, $6 plus postage. The DTJ is free to members. For details on membership, visit www.ndtahq.com. POSTMASTER: Send address changes to: Defense Transportation Journal 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296

US TRANSPORTATION COMMAND: Technology 18 Through the Lens of Warfighting Readiness By USTRANSCOM Public Affairs

EXPEDITIONARY FAST TRANSPORT CAN PROVIDE LOGISTICS SUPPORT AT THE END OF THE SUPPLY CHAIN

SDDC’S TOTAL FORCE: People Are Our Strategic Advantage

THE SUPPLY CHAIN OUTLOOK, INNOVATION AND CHALLENGES, AND IMPLICATIONS FOR MILITARY TRANSPORTATION

By Edward Lundquist

By MG Stephen E. Farmen, USA

By Benjamin Gordon

DATA DRIVEN: How Crowley’s Innovative Technology 32 Moves the Defense Supply Chain By Jim Romeo

THE NDTA AWARDS

DEPARTMENTS COUNTDOWN TO 75 | Lori Leffler & COL Dennis Edwards, USA (Ret.)............................16 PRESIDENT’S CORNER | VADM William A. Brown, USN (Ret.)......................................17 THE NEXT 75 | MG David A. Whaley, USA (Ret.)........................................................48 TRAVEL SPOTLIGHT | Joel Wartgow.....................................................................50 PROFESSIONAL DEVELOPMENT | Irvin Varkonyi......................................................51 CHAIRMAN’S CIRCLE.......................................................................................52 HONOR ROLL..................................................................................................53 INDEX OF ADVERTISERS.................................................................................... 54

We encourage contributions to the DTJ and our website. To submit an article or story idea, please see our guidelines at www.ndtahq.com/media-and-publications/submitting-articles/.

NDTA Headquarters Staff

COUNT DOWN TO 75

VADM William A. Brown, USN (Ret.) President & CEO COL Craig Hymes, USA (Ret.) Senior VP Operations Patty Casidy VP Finance Lee Matthews VP Marketing and Corporate Development Leah Ashe Manager, Database Kimberly Huth Director of Public Relations Rebecca Jones Executive Assistant to the President & CEO For a listing of current Committee Chairpersons, Government Liaisons, and Chapter & Regional Presidents, please visit the Association website at www.ndtahq.com. EDITORIAL OBJECTIVES The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense logistics and transportation and the partnership between the commercial transportation industry and the government transporter. DTJ stimulates thought and effort in the areas of defense transportation, logistics, and distribution by providing readers with: • News and information about defense logistics and transportation issues • New theories or techniques • Information on research programs • Creative views and syntheses of new concepts • Articles in subject areas that have significant current impact on thought and practice in defense logistics and transportation • Reports on NDTA Chapters EDITORIAL POLICY The Defense Transportation Journal is designed as a forum for current research, opinion, and identification of trends in defense transportation and logistics. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. EDITORIAL CONTENT Archives are available to members on www.ndtahq.com. Sharon Lo, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 slo@cjp.com

| Defense Transportation Journal | OCTOBER 2019

The 99.9% Rule By Lori Leffler, Chair, NDTA Special Projects Committee and COL Dennis Edwards, USA (Ret.), Chair, Communications & Publications Committee Founded in 1944, NDTA will be celebrating its 75th Anniversary in 2019. To commemorate this milestone event, we will be publishing a series of articles selected from our archives that will highlight important events in our Association’s history.

Most people who read magazines or newspapers have occasionally thought about sending a message to the “Letter to the Editor” column about something they particularly liked or disliked. Some folks that are really supportive (or the opposite) of the article will actually send a letter. But for the most part the effort ends up in the “to do later” file. As the DTJ Editor for many years, I saw both positive and negative responses. But, requests for copies of a piece called “The 99.9% Rule” by LTG Kenneth Wykle, USA (Ret.), our former NDTA President, were numerous. It was taken from a presentation during an MTMC (SDDC’s predecessor) Symposium. Some of the most interesting points are highlighted below.

e often think that 99.9 percent accuracy is good enough. Being right 99.9 percent of the time is a pretty good record, but sometimes impossible to achieve. For instance, the baseball player who gets a hit 99.9 percent of the times he’s at bat can be assured of a place in the baseball hall of fame. With that kind of batting average, he would command a salary that would evoke envy from a Texas oilman. In the game of baseball, getting a hit 40 percent of the time is great. But what about fielding? Is catching the ball 40 percent of the time acceptable? No! If you are a golfer, consider how you would feel if whenever you played a round of golf you were assured of a par on every hole 99.9 percent of the time. Ninetynine point nine percent isn’t too shabby, is it? On the other hand, how many of you would have gotten on the plane to fly out here if the airline pointed out they only guaranteed a safe arrival 99.9 percent of the time? That would mean eighteen major crashes per day in the world. Or suppose you had to undergo heart surgery and the doctor assured you he had a See 75th Anniversary pg. 54

PRESIDENT’S CORNER WELCOME NEW CORPORATE MEMBERS

It’s Fall Meeting Time

as of September 24, 2019

VADM William A. Brown, USN (Ret.) NDTA President & CEO

s we head into the Fall Meeting, I am most excited about the Transportation Academy that USTRANSCOM and NDTA have worked over the past year to deliver quality sessions. Education in the fields of logistics and transportation is what NDTA is all about. I want to publicly thank the many volunteers who teach and lead discussions. The key coordinators for the Transportation Academy were Mr. Irv Varkonyi (NDTA) and Mr. Timothy Ringdahl (USTRANSCOM). Please join me in thanking them when you see them at the Fall Meeting!

I also want to thank the many individuals, organizations and companies who contributed generously to the NDTA 75th Anniversary Campaign. Among other things, this will allow us to unveil the 75th Anniversary artwork—a real masterpiece that depicts the rich story of NDTA through visualization. A boatload of creativity went into the creation of the artwork. I hope you enjoy it and find it a fitting way to highlight the diamond anniversary of your association. I am a firm believer that the Expo Hall at the Fall Meeting is part of our educational program. In the Expo Hall you will find a safe environment to discuss capabilities, get

CHAIRMAN’S CIRCLE • Crowe LLP • The Port of Virginia (upgrade) SUSTAINING • Transport Investments, Inc. • AMAC Logistics LLC • Trusted Internet, LLC

new ideas—and maybe rethink some things you thought you already knew. All the exhibitors (industry and government) want to talk about their mission, business and unique capabilities. I highly recommend meeting as many folks as possible in the expo area. So, thank you to all the exhibitors. Likewise, many exhibitors are also NDTA sponsors and I want to convey See Pres. Corner pg. 50

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CO-SPONSOR & TRANSPORTATION ACADEMY PARTICIPANT

US Transportation Command

Technology Through the Lens of Warfighting Readiness By: USTRANSCOM Public Affairs

he US Transportation Command (USTRANSCOM) conducts globally integrated mobility operations in order to project and sustain the Joint Force in support of national objectives. To project the Joint Force today, the Department of Defense (DOD) uses a global network of nodes—aerial ports, seaports, distribution hubs and staging bases. Military and commercial transporters move units to and from these nodes and forward to the fight. As USTRANSCOM executes the global command and control necessary to generate an immediate force, it’s imperative that we maintain this global network of nodes and ready our mobility capacity to seamlessly transition to a fully mobilized Joint Deployment and 18

| Defense Transportation Journal | OCTOBER 2019

Distribution Enterprise (JDDE) to project a decisive force when required. Technology is a crucial component of our readiness. When we view technology through the lens of warfighting readiness, we find opportunities that can improve USTRANSCOM mission outcomes. Every activity within USTRANSCOM is measured by the contribution it makes to warfighting readiness. If the action contributes to that bottom line, then USTRANSCOM can continue to harness the power projection apparatus and ultimately, move and sustain the Joint Force globally. IT PORTFOLIO OPTIMIZATION

A candid assessment of USTRANSCOM’s Information Technology (IT) portfolio acknowledges many legacy systems do not

lend themselves to integration into rapidly advancing, data-oriented applications that are already changing the game, for us and our adversaries. At this juncture in our IT portfolio, we must determine which systems can continue to contribute to warfighting readiness and which systems require modernization. It is not enough to simply gain productivity and efficiencies through IT. Achieving advanced computational processing capabilities is at the center of our efforts. ESTABLISHING A DATA CULTURE: ENTERPRISE DATA MANAGEMENT AND DATA ANALYTICS

We are approaching the nexus of data with Artificial Intelligence, Machine Learning, and Advanced Analytics. These capabilities,

ficiently and more securely. Collaborating in the cloud creates the environment that allows us to exploit the full range of analytic tools in order to make decisions, at the scale and speed of war. Ultimately, these efforts will ensure that we retain our strategic comparative advantage to project and sustain the Joint Force globally.

US Air Force photo by Staff Sgt. Tenley Long/Released.

CYBER DOMAIN MISSION ASSURANCE

matured within our organization, will create a competitive advantage for the DOD. USTRANSCOM and the entire JDDE must manage data before it can be analyzed. The command has an enterprise data management strategy that will accomplish this first step. The follow-on step is to leverage data through analytics that enhance our operational insights and foresights to make better decisions in support of power projection. CLOUD COMPUTING

To fully realize the predictive power of analytics, information must be shared across the enterprise, with both military and commercial partners. USTRANSCOM will continue moving to the cloud to ensure accessibility of information. The cloud allows us to operate faster, more ef-

Cyberspace is a warfighting domain, without sanctuary. As in all warfighting domains, assuring mission capabilities requires resilience and simultaneous efforts across multiple functions and stakeholders, including defense, interagency and industry partners - there is no single ‘silver bullet’ solution. Our actions are underscored by the need to understand adversary intentions, capabilities, and actions targeting the JDDE. We will actively manage mission risk and advance our cyber domain capabilities by understanding our large and complex attack surface, constantly managing and improving our mission relevant cyber terrain, securing our cyber area of operations, and actively defending our ability to globally command and control operations. WARFIGHTING READINESS: DRIVEN BY NEW TECHNOLOGIES AND INNOVATION

Warfighting readiness today does not guarantee warfighting readiness in the future, a future that is unknown, unpredictable, and changing at an unprecedented pace. We face a competitive environment characterized by great power competition, an erosion of technical advantage, all-domain warfare, and increasing logistics demands. USTRANSCOM will evolve and overcome emerging threats by being agile in our processes, willing to test and rapidly adopt or reject new technologies, and make wise investments in innovation to continue to outpace our adversaries. In doing so, we will strategically maneuver our enterprise to create multiple options for national leadership and multiple dilemmas for potential adversaries. Innovation and critical thinking are essential at every echelon to ensure we can outpace our adversaries. We are all co-equal in the value of our ideas focused on improving the JDDE to support national security requirements.

DATA SCIENCE, THE COMPLICATED ATTACK SURFACE AND MUCH MORE AT THE 7TH ANNUAL FALL MEETING

USTRANSCOM looks forward to engaging further on the subject of technology at the 7th annual NDTA-USTRANSCOM Fall Meeting. Leadership will provide a unique perspective on how commercial industry is a combat multiplier while at the same time complicating the attack surface,

as adversaries will seek to harm USTRANSCOM by targeting our commercial partners in cyberspace and other arenas of competition below the level of armed conflict. In addition to key note addresses, Chief Master Sgt. Jason France, USTRANSCOM’s senior enlisted leader, will conduct a roundtable exploring Leading in a Joint Environment at this year’s meeting with senior enlisted leaders from US Indo-Pacific Command, US Strategic Command, US Cyber Command and the Defense Logistics Agency. And, join the director of the Joint Distribution Process Analysis Center, Bruce Busler, to learn about the Application of Enterprise Data Science, or choose from more than 30 academic sessions USTRANSCOM and its components will host during the meeting. Finally, congratulations to the National Defense Transportation Association for 75 years of bringing government, military, and private sector professionals together in pursuit of their greatest endeavor—serving the national defense and homeland security needs of America. See you in St. Louis! DTJ www.ndtahq.com |

“An unsupported force may quickly become a defeated one.” Sustaining the Fight: Resilient Maritime Logistics for a New Era | Center for Strategic and Budgetary Assessments (CSBA)

The Spearhead-class Expeditionary Fast Transport ship USNS Carson City (T-EPF 7) in Sekondi, Ghana, July 22, 2019. US Navy photo by Mass Communication Specialist 2nd Class Ford Williams/Released.

Being in More Places at Once Calls for Both Large and Small Platforms Expeditionary Fast Transport Can Provide Logistics Support at the End of the Supply Chain By Edward Lundquist

ince the end of the Cold War, America’s defense strategy has focused on maintaining the peace instead of waging a war with near-peer competitors. But, according to what Chief of Naval Operations John Richardson wrote in A Design for Maintaining Maritime Superiority Version 2.0, issued in December of last year, the United States is once again in the middle of a great 20

| Defense Transportation Journal | OCTOBER 2019

power competition, where “China and Russia are deploying all elements of their national power to achieve their global ambitions.” “It has been decades since we last competed for sea control, sea lines of communication, access to world markets, and diplomatic partnerships. Much has changed since we last competed,” Richardson said. “We will adapt to this reality and respond with urgency.”

Richardson calls for maturing the Distributed Maritime Operations (DMO) concept and key supporting concepts, which means having more capability in more places at any given time, and to “posture logistics capability ashore and at sea in ways that allow the fleet to operate globally, at a pace that can be sustained over time.” That means improving the Navy and Marine Corps ability and resilience to refuel, rearm, resupply, and repair. A recent Center for Strategic and Budgetary Assessments (CSBA) study, Sustaining the Fight: Resilient Maritime Logistics for a New Era, has documented the need to expand and improve the current and programmed defense maritime logistics force of the United States, which the study’s authors said “is inadequate to support the current US National Defense Strategy and major military operations against China or Russia.” America’s abilities to sustain its deployed naval forces is second to none. In 2019, however, the CSBA report said that there

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are numerous indications that this area of US competitive advantage now threatens to become a major weakness. “Adversaries of the United States—the People’s Republic of China and the Russian Federation, in particular—have developed the means to degrade, deceive, and exploit the US logistics architecture, with cascading effects on US combat forces. Moreover, decades of cuts to logistics capability, capacity, and posture have resulted in a relatively small and brittle US logistics force that at times chose and at times was forced to prioritize peacetime efficiency over wartime effectiveness and resiliency against capable adversaries.” The study looked at major programs and investments needed to retain or restore America’s competitive edge in logistics and force sustainment, including a number of recommendations that deal with large vessels, which will be needed to supply the US and partner nations at sea and ashore. The Navy’s 30-year shipbuilding plan, and its goal of growing to 355 ships, means it will need more support ships. The plan calls for more combat ships, but proportionally, the study concluded, there will be a reduction in support ships overall. The military expects to “fight in a more effective, distributed, and sustained manner, while supporting Joint Force power projection,” the authors said, which means more and varied platforms must be available to support the distributed force where needed. “An unsupported force may quickly become a defeated one,” the report said. One platform in particular—the Expeditionary Fast Transport (EPF)—has shown promise in closing gaps and delivering new

capabilities to planners and warfighters. EPF is a high-speed transport based on a commercial ferry design that has a unique combination of attributes: high-speed; significant cargo volume with a roll on-roll off ability; and shallow draft to get in and out of smaller ports. And it is affordable. EPF is not ideal for all missions. The light weight all-aluminum construction enables higher speeds and shallower draft. The platform’s wide beam and voluminous mission space provides plenty of logistics and warfighting capability, but the catamaran design poses some limitations on operations in higher sea states. As an auxiliary ship, manned by civilian mariners (CIVMARs), EPF cannot be armed or conduct combat operations, but it can support those operations in a number of ways. Operating a distributed force in a contested environment means the ships will need to be replenished and maintained. The EPF can be a platform that can deliver critical supplies, parts and maintenance capabilities and medical support as needed to dispersed locations. And if needed for combat missions, the ships can be commissioned as warships, be armed, and participate in those operations which would otherwise be prohibited for merchant ships under the law of war. EPF has the ability to embark warfighters with secure spaces and networks to conduct classified missions. The EPF today can be configured for different roles by equipping the ships with adaptive force packages. If future combat-related missions are anticipated, follow-on versions of the ship can be modified with a helicopter hangar and

A Knifefish unmanned undersea vehicle training model undergoes crane operations aboard the Military Sealift Command Expeditionary Fast Transport Vessel USNS Spearhead (T-EPF 1) as part of a training exercise enabling mine countermeasure missions (MCM) from an EPF as a Vessel of Opportunity (VOO). Knifefish is a mediumclass mine countermeasure UUV designed for deployment off the littoral combat ship. US Navy photo by Master-at-Arms 1st Class Alexander Knapp/Released.

| Defense Transportation Journal | OCTOBER 2019

elevator between the flight deck and mission bay, strengthened decks for weapons mounts, launch and recovery systems for boats and unmanned systems, and a more robust total ship computing environment and command and control suite. DISTRIBUTED MEDICAL SUPPORT

The Navy today has two large and highlycapable hospital ships. They were built as oil tankers in the mid-seventies and served commercially for a decade before being converted as hospital ships for the Navy, and have served for more than 40 years. These ships are large—70,000 tons and 894 feet long—and have a draft of 33 feet, which can limit the ports where they can call. They are manpower intensive and costly to operate. And they can only be in one place at a time. One plan is to replace the hospital ships with the new hulls of the Common Hull Auxiliary Multi-Mission Platform (CHAMP) design, which is trying to find a basic common design to replace gaining flagships, submarine tenders and other auxiliary ships. But even a new class of hospital ship based on the CHAMP design may not provide sufficient coverage for distributed operations in a global conflict. The CSBA report recommends that the Navy consider a different mix of fleet medical capabilities for the future, including new classes of small and large hospital ships. “A larger number of hospital ships would support a shift to a more distributed maritime operations construct. Small hospital ships would transit to a zone between the intermediate and forward areas to receive patients via ship and aircraft (and depending

US Navy Sailors discuss small boat maintenance while working aboard the Cabo Verde coast guard patrol craft Espadarte (P 151) in front of the US Navy Spearhead-class Expeditionary Fast Transport ship USNS Carson City (T-EPF 7) in Mindelo, Cabo Verde, Aug. 9, 2019. US Navy photo by Chief Mass Communication Specialist Travis Simmons/Released.

High-Speed Transports Connect the Dots for Distributed Maritime Operations Connecting the dots for distributed maritime operations means there are more dots to connect. That means the Navy–Marine Corps team will need more platforms to provide sustainment and maintain the force. The Expeditionary Fast Transport (EPF) is a useful tool in the tool box, offering the flexibility of supporting multiple and varied missions, and performing those missions quickly. The purpose of the EPF is to provide intra-theater lift. A typical mission involves rapidly moving cargo or personnel with their vehicles and gear from one port to another within a theater of operations. It’s a role the EPF performs well. But if combatant commanders don’t need to perform a traditional intra-theater lift mission every day, they do have a wide spectrum of missions where the EPF and its unique qualities have been well-suited. The EPF is actually a typical commercial high-speed ferry, which can be found in revenue service around the world proving high-frequency, scheduled, point-to-point revenue service. These all-aluminum catamarans carry people and their vehicles at speeds of 30 knots and faster. And as military services have discovered, these high-speed ferries, and the missions they can perform, are anything but typical. These commercial designs normally used for relatively short voyages have been demonstrated to have military utility, but modifications have been required, such as the addition of flight decks, berthing spaces, military communications equipment and weapons storage areas. Here are some notable examples of commercial highspeed ferry designs in military service: HMAS Jervis Bay (AKR 45) was a wave piercing catamaran built by Incat in Tasmania that operated commercially before entering service in 1999 with the Royal Australian Navy (RAN), just in time to support INTERFET peacekeeping taskforce in East Timor. Jervis Bay was able to complete the 430 nautical mile (800 km; 490 mi) voyage between Darwin and Dili in about 11 hours at an average speed of approximately 45 knots. Jervis Bay delivered troops, transported humanitarian supplies and evacuated civilians much more efficiently than multiple C-130 Hercules flights, and made more than 100 trips providing a critical lifeline for the U.N. peacekeeping and humanitarian operation. Austal built the 2,111 ton, 331-foot Westpac Express in 2001, which operated on a charter to support the US Marines in the IndoPacific area of responsibility until 2018. It is now in commercial service in Ireland. Benchijigua Express is a 415-foot trimaran fast ferry built by Austal in Western Australia, which is in service operating between ports in the Canary Islands. It is the basis of the trimaran Independence variant of the Navy’s littoral combat ship (LCS), built by Austal USA on a production line alongside the EPF. United States Army Vessel (USAV) Spearhead (TSV-X1) was the Army’s prototype “Theater Support Vessel,” leased from Incat between 2002 and 2005. HSV-X1 Joint Venture was leased by the Army Tank-Automotive and Armament Command and was delivered in 2001 to be operated jointly and alternately by the Army and Navy, with each service having control of the vessel for roughly six-month periods. Joint Venture was modified with the installation of a flight deck for military helicopters and a hydraulically-operated vehicle ramp for rapid loading and unloading of vehicles from a pier. The lease expired in 2005. HSV-2 Swift was a commercial high-speed ferry and directly leased by Military Sealift Command (MSC) from 2003 to 2013,

primarily as a proof-of-concept mine countermeasures and sea basing platform, and employed in fleet support and humanitarian partnership missions. Eventually both the Army and Navy created a program of record to procure the Joint High Speed Vessel, which would be built in the US and delivered to both services for their specific needs, with the first ship to also be named Spearhead. The Army pulled out of the program, but the Navy continued to receive the 1,515-ton, 338-foot ships built at Austal USA in Mobile, Alabama. The first ship of the class was delivered in 2012, and there is now a total of 13 ships delivered or under construction. The Australian shipbuilder opened its new yard for its US subsidiary at Mobile to build LCS, and trained their new workforce on building aluminum ships by constructing two 1,646 ton, 373-foot

The Military Sealift Command High-Speed Vessel Swift (HSV 2) with a tethered TIF-25K aerostat gets underway from Key West, Florida, to conduct a series of at-sea capabilities tests to determine if the aerostat can support future Operation Martillo counter transnational organized crime operations in the US 4th fleet area of responsibility. US Navy photo by LCDR Corey Barker/Released.

A Stryker Armored Combat Vehicle from US Army 25th Infantry Division is loaded on to Military Sealift Command Joint High-Speed Vessel USNS Millinocket (JHSV 3) at Joint Base Pearl Harbor Hickam in preparation for exercise Culebra Koa 2015. Culebra Koa is a US Pacific Fleet-directed amphibious force and joint sea basing exercise that will occur in the Hawaii operating area. US Navy Photo by LT Russell Wolfkiel/Released.

high speed catamarans for a new venture called Hawaii Super-Ferries, which planned to use the ships in inter-island service in the 50th state. The service would likely have been successful if it were not for a determined opposition which eventually shut down the company because of legal maneuvering around environmental impact studies. The two ships came to the Maritime Administration, and then the Navy. One of them, USNS Guam (HST 1), is replacing Westpac Express in Okinawa, and the other is in commercial revenue service between Maine and Nova Scotia.

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Boatswain’s Mate 2nd Class Allen Hamilton, attached to Navy Cargo Handling Battalion (NCHB) 1, drives a forklift into the mission bay aboard USNS Spearhead (T-EPF 1) in support of Continuing Promise 2017’s (CP-17) end of operations in Trujillo, Honduras. CP-17 is a US Southern Command-sponsored and US Naval Forces Southern Command/US 4th Fleet-conducted deployment to conduct civil-military operations including humanitarian assistance, training engagements, and medical, dental, and veterinary support in an effort to show US support and commitment to Central and South America. US Navy Photo by Mass Communication Specialist 2nd Class Shamira Purifoy/Released.

on the location, directly recover personnel itself ). A small hospital ship variant could treat patients onboard and then transit to an intermediate location, where patients could be transferred to a large hospital ship or transferred via aircraft (to include MV22 and amphibious aircraft that landed alongside) to a transportation hub that would ferry them to a major shore medical facility. More economical than large hospital ships, the Navy could acquire more of these ships and posture them throughout a theater. Additionally, these smaller

EPF can embark maintenance detachments with the specialists, parts and tools that can travel to forward positioned ships and units to maintain, repair or replace equipment, instead of bringing those units back to a repair depot to be serviced.

hospital ships would be more economical and responsive to operate in peacetime for humanitarian assistance, disaster relief or goodwill missions than larger ships. The CSBA report states that “unit-level survival and medical capabilities should be boosted, and the Navy should consider a different mix of fleet medical capabilities, including a new class of small hospital ships 24

| Defense Transportation Journal | OCTOBER 2019

(such as one based on the EPF or other design) and a new class of large hospital ships (such as one based on the Common Hull Auxiliary Multi-mission Platform), with priority given to more smaller hospital ships.” SEARCH AND RESCUE

Combat Search and rescue (CSAR) at sea is a subset of the larger challenge of finding and rescuing people in the water who have bailed out of aircraft or have had their vessels damaged or sunk. For all SAR cases, time is of the essence, and CSAR cases are often injured and in need of immediate medical attention. Likewise, medical evacuation involves getting wounded or sick patients to a facility where they can receive medical attention. The EPF provides both speed and versatility and with its shallow draft can get to the contingency area more quickly than current afloat medical platforms. DISTRIBUTED LOGISTICS

The EPF cannot assume all of the logistics functions that the report is recommending, but it can augment larger ships or support a number of these functions. For example, EPF could be configured to transport fuel, food, parts, munitions to dispersed units afloat or ashore, a role it is essentially designed for. EPF can embark maintenance detachments with the specialists, parts and tools that can travel to forward positioned ships and units to maintain, repair or replace equipment, instead of bringing those units back to a repair depot to be serviced.

With its flight deck and significant internal volume, EPF can be a link near the end of the logistics chain to get priority material to forward vessels of troops ashore using unmanned vertical lift aircraft. The Marines proved the value of using small UAVs [unmanned aerial vehicles] like the unmanned K-MAX helicopter to deliver limited loads instead of large aircraft such as the CH-53E. EPF can deliver fuel bladders and pumps or water purification systems to forward operating bases, and can be configured to provide expeditionary maintenance and repair for forces such as detachments of unmanned vehicles or MK VI patrol boats in forward or austere locations. OPPORTUNITIES FOR SEAFARERS

The nation faces a shortage of more than 1,900 mariners during protracted operations. Additional civilian-crewed ships such as the EPF providing distributed logistics support would create more jobs at sea for US mariners, and help grow the number of qualified seafarers who are available in contingencies. As a non-combatant, EPF can deliver and launch unmanned surveillance systems such as the Scan Eagle UAS [unmanned aircraft system] and Knifefish mine-hunting UUV [unmanned underwater vehicles], and could be a mother ship to large and medium sized unmanned surface vessels. The study recognizes that the CIVMAR-manned auxiliaries would benefit from uniformed detachments to “bring knowledge and authorities on board the auxiliary to support its military functions, including operating C3 and Precision Navigation and Timing (PNT) systems, managing EMS emissions, using counterISR systems, and, if necessary, overseeing defensive armament.” And while its status of a civilian crewed auxiliary vessel means that it cannot be armed, with the exception of some selfdefense capabilities, the ship could be commissioned as a Navy warship with a naval officer in command, and it can be equipped with a number of compact weapon systems that can give EPF a punch, particularly when deployed in numbers as part of a distributed force. DTJ Edward Lundquist is a retired US Navy Captain who writes on naval, maritime, logistics and transportation issues.

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Commanding General Maj. Gen. Stephen E. Farmen addresses members of the SDDC headquarters workforce, including active-duty and Reserve Soldiers, government civilians and contractors, at an SDDC Town Hall held at Scott Air Force Base, Illinois.

TRANSPORTATION ACADEMY PARTICIPANT

SDDC’S TOTAL FORCE

People Are Our Strategic Advantage By MG Stephen E. Farmen, USA, Commanding General, Military Surface Deployment and Distribution Command (SDDC)

round the globe, SDDC performs operations supporting the warfighter with a Total Force made up of trusted professionals from the active-duty and Reserve components, government civilians, contractors and local national employees, and our fourth component, commercial industry partners. SDDC is both the Army Service Component Command to the US Transportation Command (USTRANSCOM) and a major subordinate command to the US Army Materiel Command (AMC). We are a key member of USTRANSCOM’s Joint Deployment and Distribution Enterprise (JDDE) and the global intermodal surface connector, harmonizing the kinetics between the JDDE and AMC’s Materiel Enterprise, at echelon, by connecting surface warfighting requirements through distribution network nodes to the point of need. Our Army’s readiness is at the highest point that it has been for a long time, and our Surface Warriors work hard to connect 26

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the kinetics to keep it that way. SDDC’s Total Force Surface Warriors are the connective tissue that binds this whole distribution network together, and it takes a professional, skilled and extremely dedicated workforce to make this a reality. Simply put, our people are our strategic advantage. SDDC’s active-duty force is manned, equipped and trained, and geographically positioned to ensure warfighting readiness. They provide surface mobility options to ensure strategic readiness, instill confidence in our Allies and mission partners, deter our enemies, and support warfighting requirements to the point of need. With five active-duty transportation brigades and their subordinate battalions located throughout Europe, Asia, the Pacific and the continental United States, these units do not need to deploy to support Combatant Commanders because they are already there, ready to deliver readiness and lethality. SDDC’s US Army Reserve force, the Deployment Support Command (DSC), provides SDDC with an integrated Total

Force capability that is critical to sustaining our readiness. Half our strength and power resides in the DSC, and the integration of SDDC’s active and Reserve components is a primary capability that enables our mission readiness. The DSC brings significant capability to the fight and supports SDDC operations by providing four Reserve transportation brigades and an Expeditionary Rail Center. Operationally controlled by SDDC and headquartered in Birmingham, Alabama, the DSC is a direct-reporting command of the 377th Theater Support Command, located in Belle Chasse, Louisiana. By consolidating all Army Reserve surface mobility units under a single organization and providing mission command, technical training and readiness oversight, the Surface Warriors of DSC are key enablers for SDDC. The majority of SDDC’s workforce is made up of government civilians. Often, when civilians are discussed, the one thing that is always mentioned is that they pro-

vide the force with continuity. Within SDDC, that is indeed true. However, the civilian Surface Warriors of SDDC provide far more than just continuity—they provide the leadership and expertise required to maintain and execute the many specialized systems and programs the command requires to deliver readiness and lethality. When SDDC’s missions occur outside the continental United States, we often rely on a special set of civilians—local national employees, also known as host-country nationals—to help bridge the gap between host nations and the command. SDDC employs over 230 local nationals to assist its brigades, battalions and detachments. These Surface Warriors are essential to our long game. They bring continuity, as well as an in-depth knowledge of the community and language capabilities, that allows SDDC to successfully operate within their respective regions. Some of our local nations have worked in their SDDC jobs for decades and they are an important part of the SDDC Surface Warrior Family. They share, along with their military and government civilian counterparts, camaraderie as part of a supportive and cohesive team which is based on mutual trust and a shared identity as Surface Warriors. SDDC’s fourth component, our commercial carriers and industry partners, performs an indispensable role in SDDC’s success. Commercial carriers and partners contribute approximately 88 percent of continental US land transport and 80 percent of global sealift for USTRANSCOM’s global mobility capability. They provide expertise, capability and professionalism, and their continued support, coordination and synchronization is vital to our ability to deliver readiness and lethality in support of our Nation’s objectives. They are more than just partners, they are critical members of the SDDC team. In today’s complex and unpredictable world, Surface Warriors are unified in our purpose to move, deploy, and sustain the Armed Forces to deliver readiness and lethality at S.P.E.E.D. Strategic in execution, being “left of boom” Power projection, which is what we do Enabling war-fighting readiness Experts in intermodal operations Dynamic force employment When we get those elements of speed right, we move at the speed of war, the speed of assembly, the speed of documen-

SDDC’s Equal Employment Opportunity (EEO) Office staff pose for a group photo. Government civilians make up a majority of the SDDC workforce and provide the command with continuity and expertise.

Brig. Gen. Martin F. Klein, SDDC deputy commander for operations and commanding general of SDDC’s Reserve force, the Deployment Support Command, congratulates one of his Reserve Soldiers during port operations at Pearl Harbor, Aug. 10.

A Soldier from SDDC’s 950th Transportation Company observes as a contractor repositions an M2A3 for upload onto the ARC FREEDOM at the Port of Bremerhaven, Germany during the 1/1 Cavalry’s deployment to home station, Mar. 9.

tation, the speed of trust, and then we move at the speed of relevance. SDDC responsively projects power by effectively integrating, synchronizing and providing global deployment and distribution capabilities in support of our Na-

tion’s objectives around the globe. The Surface Warriors who make up SDDC’s Total Force team, and the diverse capabilities they bring to our mission, provide the command with a strategic advantage that cannot be matched. DTJ www.ndtahq.com |

TRANSPORTATION ACADEMY PARTICIPANT

The Supply Chain Outlook, Innovation and Challenges, and Implications for Military Transportation By Benjamin Gordon, Managing Partner, Cambridge Capital

he supply chain sector is in the news today. Rising tariffs, the trade war with China, Amazon’s quest for same-day delivery, autonomous vehicles, and drones are all in the news. What does it mean, and how does it impact the overall supply chain, as well as military transportation? We see three major challenges facing the supply chain market today. Trade: War and Peace

The first challenge is the choppy political climate. On the one hand, we averted a trade war with Canada and Mexico when the Trump Administration canceled the North American Free Trade Agreement (NAFTA), but then replaced it with a similar deal in September. On the other hand, we may be entering a bigger battle with China. President Trump and Chinese Core Leader Xin Jinping agreed to postpone retaliatory tariffs on December 1. But if they fail to reach agreement, the US will impose 25 percent tariffs on $200 billion of Chinese goods, and China will reimpose 40 percent tariffs on US cars. The US supply chain is already feeling the consequences. West Coast shipping data shows a drop in exports to China. In November, over 186,000 containers in Long Beach were shipped empty back to Asia, reflecting an 11 percent increase. It appears that China is finding non-US sources for products wherever possible. In the short term, the data is mixed. In fact, the US imported record levels of products in the first quarter of this year. In addition, at the port of Long Beach volumes are at all-time highs, and exceeded 7.5 million containers handled. Many analysts believe US retailers pursued a surge in Chinese purchases in late 2018, to beat the 2019 tariffs. If true, this pre-buy could lead to a 2019 slowdown. An unintended consequence of the Trump trade policy is the trend toward 28

reshoring. Tariffs are intended to encourage American consumers to buy American. In turn, Trump has sought to bring manufacturing jobs to the US. Some companies, like Carrier, announced plans to expand manufacturing in the US. However, others have announced plans to increase manufacturing in China, in order to avoid US-China tariffs for products aimed for non-US consumers. BMW, for instance, began building their X3 Sport Utility Vehicles in China, and announced plans to make China an export hub for the electrified X3. For supply chain companies, one silver lining is volatility. More uncertainty typically means more margin opportunities for freight forwarding and other asset-light companies. Labor: The $100,000 Truck Driver

The second challenge is the tight labor market. Consider the truck driver—At Walmart, entry-level drivers are now earning record salaries of $86,000. Fullyloaded to reflect the cost of benefits, this costs Walmart over $100,000 per year. Meanwhile, at YRC, the Teamsters are beginning steps toward a new collective bargaining agreement, replacing a five year extension that expires on March 31. The contracts cover 20,000 Teamsters. In the

words of the Teamsters’ Ernie Soehl, “we are not interested in concessions in these negotiations!” Is it a coincidence that trucking stocks have plummeted, and companies like Knight, Werner, ArcBest and YRC are trading at 6x, 5x, 4x, and 3x EBITDA [earnings before interest, tax, depreciation and amortization], respectively? Yet these cost spikes also carry unintended consequences. As labor becomes more expensive, technology becomes more competitive. Will 2019 be the year when autonomous trucks gain traction? McKinsey estimates that full automation of trucks could slash operating costs by as much as 45 percent in the next decade, saving the industry over $100 billion. Benefits include: • Two-truck platooning – yielding one percent savings due to fuel improvement • Driverless platooning – enabling “follower trucks” to drive unmanned, producing an additional 10 percent savings • Constrained autonomy – allowing unmanned trucks to operate in geofenced areas, garnering 20 percent savings • Fully-autonomous trucks – eliminating drivers for all functions including loading, driving, and delivery, and achieving a full 45 percent saving

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Yet these cost spikes also carry unintended consequences. As labor becomes more

Are these Panglossian projections, or are they realistic? In Australian mines, Komatsu has been operating driverless construction vehicles for years. And on the passenger side, Intel is launching a fleet of 100 self-driving cars. Technology: The Many Arms of the Octopus

Source: McKinsey

This brings us to the third challenge: technology disruption. 2018 was a year of rapid change and investment in technology. The chart below illustrates 16 new technologies that are powered by six major trends. Each of these factors represents a threat to the established order of supply chain companies today. For example, the intersection of ecommerce, cloud technology, and “supply chain 4.0” has led to a surge in digital freight brokers. Convoy became a unicorn. Transfix is rumored to be not far behind. Uber invested aggressively into its Uber Freight initiative. In total, more than 20 companies in this sector raised capital in 2018. Meanwhile, hundreds of enterprises are investing in “Digital Transformation,” as they seek to keep up. The Biggest Disruptor: Amazon

Many companies are using technology to pursue disruption. None is doing so in a more powerful manner than Amazon. With $740 billion of enterprise value as a war chest, Amazon is deploying its resources to pursue logistics. Amazon views its logistics business as a differentiator. Last quarter, Amazon delivered over 1 billion holiday packages “for free,” to members of Amazon Prime. It spent over $9 billion on shipping charges last quarter, representing close to a 30

Source: McKinsey

percent increase over the prior year. And add 33 percent more planes to its lease agreeAmazon already delivers about 10 percent Air Transport Services Group For example, the intersection of ecommerce, ment cloud with technology, and “supply chain 4.0” has of its own packages. (ATSG), while extending the duration of theto be led to a surge in digital freight brokers. Convoy became a unicorn. Transfix is rumored 2018, Amazon transportation leasesFreight by twoinitiative. to ten years. ATSGmore and than notInfar behind. Uberbought invested aggressively intoprior its Uber In total, 20 in thisOn sector capital in 2018. Meanwhile, of enterprises andcompanies logistics assets. the raised warehousing Atlas air now operatehundreds 40 767 planes. In addi- are investing in “Digital as they tion, seek Amazon to keep up. front, Amazon beganTransformation,” to deploy its Whole negotiated warrants that could Foods acquisition in order to turn its stores boost Amazon’s ownership to 39.9 percent of Biggest Disruptor: Amazon The into distribution centers. On the transportaATSG and 20 percent of Atlas. Could a purtion front, Amazon has doubled down on chase disruption. of transportation Many companies are using technology to pursue Nonecompanies is doing be sonext? in a more its aviation assets, announcing that it would Meanwhile, Amazon has continued to in-chest, powerful manner than Amazon. With $740 billion of enterprise value as a war vest in innovation. For a good leading indiAmazon is deploying its resources to pursue logistics. cator into Amazon’s plans, we can look at its patents. Amazon’s 2018 patents included a “robotic pitcher.” The Amazon arm intends 5to identify, grab, and throw objects into bins. Another patent provides ultrasonic pulses on wristbands to guide employees’ hands. Crazy or scary? We will have to see. THE OPPORTUNITIES

Against these challenges of political volatility, labor shortages, and technology disruption, where are the opportunities? Technology: The Empire Strikes Back

One major opportunity is for incumbents to use technology to fight back. www.ndtahq.com |

Technology: The Many Arms of the Octopus

much as 50 percent from peak to trough in 2018, based in part on fears of technology disruption.

Today, Ford sees its future as not just a carmaker, but also a “mobility manager.” These kinds of changes would have been unthinkable as little as 2 years ago. Will other transportation sectors and companies follow suit? So how did Ford respond? Ford characterized these changes as “the fastest transformation in 100 years.” As Ford watched these trends, they decided to respond with key investments and acquisitions. Ford formed a strategic venture arm in Silicon Valley, called the Ford Research and Innovation Center. Ford then invested in several autonomous vehicle pioneers, including Velodyne LiDAR, Civil Maps, SAIPS, ARGO AI, and Nirenberg Neuroscience.

to take root, the entire transportation industry is likely to go through the same transformation. For instance, in the logistics sector, stocks like XPO, CH Robinson, Echo and Hub Group dropped as much as 50 percent from peak to trough in 2018, based in part on fears of technology disruption. So how did Ford respond? Ford characterized these changes as “the fastest transformation in 100 years.” As Ford watched these trends, they decided to respond with key investments and acquisitions. Ford formed a strategic venture arm in Silicon Valley, called the Ford Research and Innovation Center. Ford then invested in several autonomous vehicle pioneers, including Velodyne LiDAR, Civil Maps, SAIPS, ARGO AI, and Nirenberg Neuroscience. Today, Ford sees its future as not just a carmaker, but also a “mobility manager.” These kinds of changes would have been unthinkable as little as 2 years ago. Will other transportation sectors and companies follow suit? We expect to see more transportation and logistics companies choose to make a portfolio of strategic investments throughout this year. Consolidation: The Party Continues

We expect to see more transportation and logistics companies choose to make a portfolio of making truck.” In the truck bed, robots are For example, in retail logistics,this Amazon’s strategic investments throughout year.

going to produce pizza pies on demand. strategic initiatives are driving competitors to act. Target is seeking to replicate AmaConsolidation: The Party Continues zon Prime capabilities with its own supIncumbents Create Corporate This bringsinvestments. us to the third deal activity. Amidst all of these positive Venture Groups ply chain Aftermajor buyingopportunity: Shipt catalysts, weJunction, are continuing record mergers and acquisitions (M&A) activity across and Grand Targettoiswitness now seeking A second major opportunity is for incumall industry sectors. to expand its capabilities. Shipt will soon bents to create corporate venture groups. reach 50 million households. And Target Major deals in the past year included several themes:Ford Motor Company is a case in point. will offer free 2-day delivery for “Redcard” The automotive industry has been beset holders and purchases of overMNX $35, includby technological disruption. In 2017, we • Niche consolidation: acquired Network Global Logistics, creating a market ing drive-up service. saw the advent of ACES, the acronym for leader in time-critical logistics. Penske bought Old Dominion Truck Leasing, Walgreens saw Amazon’s key bought trends First including Conexpanding its core leasingpurchase business. of RoadOne Coast Autonomous, Logistics, bolstering Pillpack and decided to respond too. They nected, Electrification, and Sharing. its drayage network. Transportation Insight bought Nolan Transportation Group, forgeddoubling a partnership Fedex to pursue Fordmanagement. and GM enjoyed nearly abought centurya down with in truck brokerage and freight And Lineage next-day prescription delivery nationwide. as established US market leaders. Despite string of cold storage companies including Service Cold Storage, bidding to challenge OnAmericold. the intellectual property front, their entrenched leadership positions and Walmart is investing in patents too. A rehead start, today, the combined • Geographic expansion: DSC Logistics 100-year sold to South Korea’s CJ Logistics. CFI cent patent seeks to provide a “Fresh Onmarket value of these two incumbents is (formerly Con-Way Freight and now a part of Transforce) acquired Optimal Freight, line Experience.” Consumers will be able now less than the combined market valresulting in a truckload and asset-based 3PL expansion on a NAFTA-wide basis. to seeFedEx individual fresh remotely beue payment of Uber processing and Tesla—two startups teamed up items with Wirecard, providing and retail outletsthat in fore making a purchase. didn’t exist only 15 years prior. India, Germany, and elsewhere. Meanwhile, AIT bought ConneXion World Cargo, Lastly, other transportation and retail In many ways, what is happening to carcompanies are forging partnerships to inmakers is a prelude to what is happening 8 novate together. For instance, Pizza Hut in trucking. As Tesla rolls out its electric and Toyota joined forces to create a “pietrucks, and as driverless technology begins 30

| Defense Transportation Journal | OCTOBER 2019

This brings us to the third major opportunity: deal activity. Amidst all of these positive catalysts, we are continuing to witness record mergers and acquisitions (M&A) activity across all industry sectors. Major deals in the past year included several themes: • Niche consolidation: MNX acquired Network Global Logistics, creating a market leader in time-critical logistics. Penske bought Old Dominion Truck Leasing, expanding its core leasing business. RoadOne bought First Coast Logistics, bolstering its drayage network. Transportation Insight bought Nolan Transportation Group, doubling down in truck brokerage and freight management. And Lineage bought a string of cold storage companies including Service Cold Storage, bidding to challenge Americold. • Geographic expansion: DSC Logistics sold to South Korea’s CJ Logistics. CFI (formerly Con-Way Freight and now a part of Transforce) acquired Optimal Freight, resulting in a truckload and asset-based 3PL expansion on a NAFTA-wide basis. FedEx teamed up with Wirecard, providing payment processing and retail outlets in India, Germany,

and elsewhere. Meanwhile, AIT bought ConneXion World Cargo, bringing the UK-based forwarder into their fold. Panalpina added Skyservices in South Africa, with a focus on perishables. Kerry Logistics went to Italy to buy Saga Italia in oil/gas freight forwarding. And Kuehne + Nagel purchased Panatlantic Logistics in Ecuador. • Service synergies: BNSF bought Unlimited Freight, adding flatbed capabilities. Pilot purchased Manna, gaining a last-mile foothold in furniture. Ryder bought MXD, becoming #2 in “big and bulky e-commerce.” And Hub bought CaseStack, combining intermodal logistics with asset-light warehousing. • Global technology: Project44 bought GateHouse, adding a Denmark-based business with breadth of European visibility data. Meanwhile, Australia-based WiseTech bought a string of US-based customs brokerage technology companies. • Logistics plus technology: Yusen Logistics added ILG, gaining an ecommerce warehousing platform with more than 700 clients worldwide. Ryder bought MXD, adding ecommerce ful-

fillment. FedEx bought UK-based P2P Mailing, providing ecommerce transportation solutions, and expanding FedEx’s cross-border capabilities.

lion investment in China’s second largest logistics real estate supplier, China Logistics Property Holdings.

The best transportation companies are taking advantage of these trends. Winners are leveraging new technology, investing in productivity, pursuing acquisitions to scale up, and finding new ways to compete. If you are a military supplier, are you doing everything you can on these fronts?

For the military supply chain, several conclusions stand out. The best transportation companies are taking advantage of these trends. Winners are leveraging new technology, investing in productivity, pursuing acquisitions to scale up, and finding new ways to compete. If you are a military supplier, are you doing everything you can on these fronts? If you are a contractor, are you picking the best companies to give you the strongest resources in these arenas? And if you are involved elsewhere in this sector, how will you invest to ensure your continued success? DTJ

• China: In a busy year, China deserves its own category. Alibaba and its logistics subsidiary, Cainiao Network, invested $1.4 billion in last-mile logistics company ZTO Express. As large as this deal was, it was Alibaba’s third such deal, after YTO Express and Best. Meanwhile, JD.com made a $115 mil-

Benjamin Gordon is Managing Partner of Cambridge Capital, a private equity firm focused on the supply chain sector. Cambridge Capital is currently seeking new investment opportunities. The firm prioritizes working with outstanding CEOs and owners who are building niche leaders in the supply chain arena. For more information, please feel free to contact him at Ben@CambridgeCapital.com.

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TRANSPORTATION ACADEMY PARTICIPANT

Data Driven How Crowley’s Innovative Technology Moves the Defense Supply Chain By Jim Romeo

n March 2019, General Stephen R. Lyons, Commander, US Transportation Command (USTRANSCOM), addressed the Senate Armed Services Committee by framing the immensity of moving the supply chain of the US Department of Defense (DOD). “The department’s global deployment networks, transportation capacity in air, on land, and over the sea, and our global command and control capabilities, combine to

| Defense Transportation Journal | OCTOBER 2019

provide the United States with a strategic comparative advantage unmatched around the world,” he stated. Lyons’ statements underscore the heightened importance of logistics management to move the supply chain that supports the warfighter—directly and indirectly. But meeting this demand requires strategic partners who share their mission and their objectives. With the assistance of data science, associated technological strength, and a long

history of logistics solutions, Crowley has firmly established itself as one of those like-minded partners. The company’s capability to integrate systems with flexibility to adapt to partners and carriers has resulted in job performance that meets or exceeds on-time standards of 99 percent. That high capability enhances the DOD supply chain to support the depth of global reach that defense leaders and USTRANSCOM require.

Chain 4.0” for DOD with transportation services used in rapid response, load optimization, improved visibility, better control, coordination of customs documentation, and many other services. They’ve become a catalyst to move the freight, to and from various facilities and distribution centers within the Department of Defense and US military installations. NIMBLE AND QUICK VIA CLOUD-BASED TECHNOLOGY

To meet DOD challenges required of the contract, the company developed its Crowley Integration Framework to adapt the changes requested by government. The cloud-based platform provides flexible architecture that serves as a roadmap to plan, track and execute transportation requirements while providing valuable data management to increase efficiency. The Crowley Integration Framework partnership with 3Gtms, a global provider of Tier 1 transportation management software, is also instrumental in helping Crowley process more than 1,800 moves a

The contract is one of the largest logistics contracts of its kind ever awarded. It requires careful planning to manage a complex network of moving goods and an enormous volume of cargo in the aggregate.

TECHNOLOGICAL HORSEPOWER FOR GLOBAL REACH

In 2017, Crowley was awarded the $2.3 billion Defense Freight Transportation (DFTS) contract by USTRANSCOM. The contract is one of the largest logistics contracts of its kind ever awarded. It requires careful planning to manage a complex network of moving goods and an enormous volume of cargo in the aggregate. Every day, cargo managed by the

Crowley Solutions business unit move among material suppliers, 29 Defense Logistics Agency (DLA) sites, and nine Defense Contract Management Agency (DCMA) sites in North America. The cargo descriptions are many. Their load-outs include less-than-truckload (LTL), full-truckload (FTL), time-definite, refrigerated cargo, as well as many other types via different transport modes. The company has built a de facto “Supply

day that involve over 100,000 transactions across multiple systems. This integration framework also mitigates functionality gaps and leverages other transportation management systems (TMS) like TMW systems in the existing Crowley technology landscape. The new technology framework allows Crowley to expedite DOD orders with a rapid response time, said Smijith Kunhiraman, Director of Technology at Crowley Solutions. Kunhiraman says the contract has multiple key performance indicators (KPIs) that measure Crowley’s performance and response time—and those KPIs are being met or exceeded nearly 100 percent of the time as result of the technology being leveraged. The DOD submits orders using electronic data interchange (EDI). While EDI www.ndtahq.com |

is older format and technology, it is still leveraged by many within the transportation industry, and DOD is no different. However, Crowley needed to leverage new technologies to speed the processing of these files from their legacy systems. Crowley put its integration framework to work, accommodated the legacy technology, and can provide unprecedented response time to on demand orders. Crow-

With an organic team of data scientists, they turned data into analytical information, and those analytics into decision tools. The team’s work results in operational efficiency and cost savings, as well as better utilization of the carrier networks.

ley’s integration framework solution was a mixture of the TMS working with a unique combination of the existing EDI and an application programming interface (API). The unique API framework developed by Crowley Solutions is used by the company’s network carriers and partners, both internally and externally, to facilitate data transfers among platforms to support the 34

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successful execution of the DFTS contract from order entry to final delivery. LEVERAGING DATA SCIENCE AND ENTERPRISE ENABLERS

Kunhiraman also describes another important component: Data science. The Crowley Solutions group has a team of data scientists who dedicate much of their time and effort to examining movements and computing cargo flow optimization models based on data analytics. With an organic team of data scientists, they turned data into analytical information, and those analytics into decision tools. The team’s work results in operational efficiency and cost savings, as well as better utilization of the carrier networks. Another notable and key strategic step Crowley implemented with their role in the DFTS contract was to align their own culture and objectives with those of DLA. DLA’s “Strategic Plan Enterprise Enablers” became essential ingredients for Crowley to build a nimble supply chain network. Specifically, these enablers included innovation, data management, technology, and cybersecurity. By focusing on these enablers, they incorporated their IT and data operations to sync with those of the DLA. “We used their enablers and incorporated them into our own processes,” said Kunhiraman. “Namely, we employed au-

tomation to precipitate things like error handling, performing internal and external penetration tests [to ensure cyber security]. We are simply executing the contract by aligning our lanes of technology with theirs.” LOGISTICS MUSCLE

USTRANSCOM has overwhelming responsibilities. They can’t do it alone. For Crowley’s DFTS program, implementing innovative tools and technology, and meeting essential performance measures is a formidable achievement, making the company not only a like-minded partner, but ready for the next order. And they’re able to do this because they’re putting their logistics muscle to work. When it comes to transportation, Crowley has muscle to flex as a company that has operated in diverse sectors and locations for more than 127 years. The company started as a maritime provider but has grown to be leader in achieving solutions in various transportation and logistics modes. For its commercial and government customers, it coordinates over 3 million freight transportation moves across the United States annually. This vast operational experience, combined with its fleet assets and a strong network of transportation partners, was strategically aligned and suited to handle DOD’s intense cargo demand. Crowley’s

www.transportationinstitute.org /transportation.institute @Trans_Inst

President James L. Henry

5201 Auth Way Camp Springs, MD 20746 301.423.3335 Pacific Coast Office 2200 Alaskan Way, Ste 110 Seattle, WA 98121 206.443.1738

The U.S. Merchant Marine Reaffirming its Commitment to the Armed Forces in times of Peace and Conflict

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management of DFTS is designed to be flexible and expandable to support all Service branches, as well as adaptable to operational needs in the regions that DFTS services. For example, Crowley’s management of freight transportation for DLA has led it to identify growth opportunities that add value and efficiency for government custom-

ers. In one case, they identified volume and flow improvements that could be made by introducing a technology-supported crossdock facility serving the DLA Distribution Center in Susquehanna, Pennsylvania, for final-mile deliveries. That will enhance consolidation services for the military distribution center, as well as add options for future streamlining to aid locations farther

Ready to Serve

away. The Crowley technology framework will continue to be used to optimize cargo deliveries and on-time rates. With its deep history, Crowley has built its wide capabilities in transportation management and logistics services for a wide base of customers over the years, moving goods of all types, from point of origin to final destination. Building on its immense capabilities in maritime operations, the company has proven its ability as an inland freight transportation company. The efficiency and optimization the company has been able to achieve, facilitates the strategic comparative advantage General Lyons spoke of. This all loops back to the need for USTRANSCOM to reinforce DOD’s global reach. Crowley’s technology advances continue to contribute to this effort by helping the DOD supply chain move with ease. The company knows the importance of visibility and control, and how to provide it to customers along traveled paths. It is able to leverage a legacy of transportation experience along with all the knowledge gained over the years and put it to use for USTRANSCOM—helping to make the DOD go—on-time and on schedule. DTJ

Shipbuilding and Repair Facilities Infrastructure, personnel and knowledge Military deployment activities on 48-hour notice

Strategic Advantage World-class infrastructure and services combined with strategic location enables the Port of San Diego to serve an important role in National Defense. We are proud of our designation as a “Strategic Port,” both for our service to the nation and for our role as a conduit for military cargo moving around the globe.

portofsandiego.org/cargo

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Proudly serving the U.S. Military throughout the Pacific.

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| Defense Transportation Journal | OCTOBER 2019

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NDTA has a number of awards that recognize individual and corporate members, as well as chapters and military units that have excelled in fostering the goals and aims of the association. These awards include the National Transportation Award, National Defense Leadership Award, NDTA Corporate Distinguished Service Awards, NDTA Instructor of the Year Awards, and Military Unit of the Year Awards, among others. We congratulate this yearâ&#x20AC;&#x2122;s award winners and thank them for their contributions to the association, as well as to the greater logistics and transportation community. www.ndtahq.com |

NATIONAL TRANSPORTATION AWARD

NATIONAL DEFENSE LEADERSHIP AWARD

William J. Flynn

LtGen John J. Broadmeadow, USMC

Chief Executive Officer Atlas Air Worldwide

r. William (Bill) J. Flynn has had a nearly fortyyear career in transportation and supply chain management. Mr. Flynn is the Chief Executive Officer of Atlas Air Worldwide. Atlas and its subsidiaries, operate the world’s largest fleet of Boeing 747 freighter aircraft serving the global air freight market. Prior to joining Atlas in 2006, Mr. Flynn was the President and CEO of GeoLogistics, Inc. a global freight forwarding and supply chain services provider. He led the successful turnaround of the company and eventual sale of the enterprise to Agility Logistics. Mr. Flynn also held senior management positions at CSX Transportation, CSX Corporation, and Sea-Land Service, Inc. At CSX Transportation, he was Senior Vice President responsible for the industrial unit of the railroad and also served as Senior Vice President responsible for Strategic Planning at CSX Corporation. He had a 23-year career at Sea-Land Service and, as Senior Vice President of Asia, was responsible for the company’s business in Asia including liner shipping, marine terminal management, logistics and joint ventures in terminal development in Hong Kong and China. He led the development of key joint ventures in Tianjin and in Shanghai port operations. He had several other assignments outside of the continental US, including Guatemala, Puerto Rico, and Japan. Mr. Flynn served as the Chairman of the Board of Directors of NDTA from 2014 to 2017. Atlas has been a member of NDTA since 2007 when Mr. Flynn joined the company. His strong leadership and service as Chairman of the Board was the catalyst behind many improvements to NDTA programs and helped bring renewed energy to the Committee process. Mr. Flynn’s credibility with industry and the Department of Defense is highly deserving of the NDTA National Transportation Award.

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tGen John J. Broadmeadow currently serves as Director of the Marine Corps Staff. His previous assignment was as the Deputy Commander of US Transportation Command (USTRANSCOM). The NDTA Awards Committee recognizes LtGen Broadmeadow’s significant contribution in logistics and transportation leadership, particularly while serving as Deputy Commander at USTRANSCOM. Working closely with NDTA, he strengthened the relationship between DOD and industry across every sector. In particular, he reformatted USTRANSCOM’s Executive Working Groups to allow cleared industry participants to understand the complexity of military deployments on a large scale, as well as driving insights into commercial operations in a contested environment. He also made significant inroads towards understanding the impacts a large-scale military operation would have on commercial industry operations and the US economy. A promotor of innovation and often challenging the status quo, LtGen Broadmeadow helped manage such programs as USTRANSCOM’s Transportation Management System prototype and streamlining its household goods programs. He was an ardent supporter for industry’s concerns being vetted through the NDTA Committee process. Examples of issues he advocated on include commercial first, cargo preference, base access, the Jones Act, sealift recapitalization—and the readiness of both the military and industry to respond in time of crisis. NDTA is proud to present the NDTA National Defense Leadership Award on behalf of so many throughout the US military and defense industry who have been served by LtGen Broadmeadow’s profound positive leadership.

NDTA PRESIDENT’S AWARDS

Ernest Bezdek

COL Dennis Edwards, USA (Ret.)

Director of Trade Development Port of Beaumont

r. Ernest Bezdek’s career spans 35-years in the international shipping and port industries, primarily in Houston and Beaumont, Texas. His shipping career includes US company Lykes Lines, Danish shipping company Nordana, and French company Delmas/Bolloré Group. Mr. Bezdek currently serves as the Director of Trade Development for the Port of Beaumont and is responsible for international sales, as well as real estate expansion and development. The number one strategic military outload port in the nation, the Port of Beaumont has been an NDTA member since 1988 and is home to the 842nd Transportation Battalion. Since 2006, Mr. Bezdek has served as the NDTA Houston Chapter President and NDTA’s Southwestern Regional President. He is currently the Chairman of the NDTA Ports Subcommittee, under the NDTA Surface Committee. In this role, he was instrumental in revitalizing the Subcommittee at the request of MG Stephen Farmen, Commander of SDDC. Mr. Bezdek also played a key leadership role in the May 2019, NDTA-Christopher Newport University Conference on America’s Strategic Seaports. Teaming with MARAD and AAPA, and through his strong leadership, Mr. Bezdek successfully launched the Ports Conference, making that conference one of the most highly regarded events of the year. Mr. Bezdek’s actions and “can-do” leadership style are undeniably worthy of the NDTA President’s Award.

NDTA 75th Anniversary Committee Lead

or close to 55 years, COL Dennis (Denny) Edwards has been associated with NDTA—and has been the recipient of many prior NDTA awards. He and his wife, Karen, are frequent volunteers and 2019 has been no exception. Having been instrumental in several other NDTA anniversary celebrations, COL Edwards volunteered to lead the 75th Anniversary Committee. He was the driving force behind the 75th commemorative artwork, as well as the development of the 75th Anniversary Yearbook. To these tasks he devoted himself. His experience with NDTA has been invaluable towards making the 75th Anniversary a success. If there was such a thing, COL Edwards would hold a PhD in NDTA history. He was the right person to lead this year’s anniversary! Please join NDTA in congratulating and thanking COL Edwards for his service to the association.

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NDTA PRESIDENT’S AWARDS, CONT’D

Lori Leffler

LTC John Fasching, USA (Ret.)

NDTA 75th Anniversary Committee

s. Lori Leffler left private industry in 2015 to join the Defense Travel Management Office (DTMO), in a career change rarely seen. Having worked for Hertz and other hospitality related companies, she brings a wealth of experience and knowledge to the government travel management team. The DOD spends $8B per year on travel and related services. Ms. Leffler is helping DTMO leadership transform the way DOD travels—and bring improvements in efficiency, traveler experience and safety. Ms. Leffler has been a vibrant member of NDTA for many years, displaying initiative, loyalty and a spirit of teamwork. Most notably she was the driving force behind the A-35 Young Professionals program. This year, NDTA recognizes Ms. Leffler once more for her dedication to making the NDTA 75th Anniversary a success. Her countless hours of service, alongside COL (Ret.) Dennis Edwards, was invaluable towards putting the plan together and executing upon it. Her outstanding leadership style and positive approach to accomplishing difficult tasks is worthy of the NDTA President’s Award. Please join NDTA in expressing our appreciation and congratulations!

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Senior Consultant, Maintenance, Distribution and Operational Logistics Group, LMI

TC John Fasching has been involved in NDTA for decades—ever since he was a young Army logistician. He has served in many capacities within the association, most notably serving since 1991 as the Pennsylvania State President. Since his retirement from the Army, LTC Fasching has continued to serve as LMI’s lead representative to NDTA since 2006. Recently, LTC Fasching was a member of the all-volunteer team that wrote a report providing a top-to-bottom review of the association, which made recommendations regarding what should be done to improve communications and outreach to NDTA Chapters. This work will enable NDTA to better execute its mission across the entire association in 2020 and beyond. Along with his wife Lisa and daughter Taylor, LTC Fasching has volunteered at many NDTA events and conferences. Most recently, COL Fasching supported the first NDTA-CNU Conference on America’s Ports by helping to author an abstract that led to a panel focused on ports operating in the contested environment. LTC Fasching wrote an in-depth article, Transforming America’s Force Projection Capability: Strategic Partner Integration Required, for the August 2019 Defense Transportation Journal. This article, which should be required reading for NDTA members, can be found on the NDTA website. LTC Fasching is loyal, hardworking, exemplifies the finest standard in thought leadership, and is well deserving of this award!

NDTA PRESIDENT’S SPECIAL ACHIEVEMENT AWARD

NDTA SCHOLARSHIP RECIPIENTS – NATIONAL LEVEL PROGRAM A

Carden Jennings Publishing Co., Ltd. (CJP)

JP, led by Mr. William (Bill) Carden, has been publishing NDTA’s flagship publication, the Defense Transportation Journal (DTJ), since 1992. Founded in 1985, CJP possesses a wealth of publishing, publishing service, and design experience. The company is entering its third decade with the following mission: On behalf of our clients, our mission is to extend the reach and influence of essential content through innovative print and electronic publications. NDTA is proud of its association with Carden Jennings Publishing and would like to recognize their profound contribution to NDTA’s success. Not just for the many years the two organizations have worked together on the DTJ, but in the past year in particular. In 2019, the two groups worked together to improve the NDTA website, website searchability and editorial content—while, at the same time, producing the NDTA 75th Anniversary Yearbook. Together we have a solid plan for continued improvements that will help NDTA with our education mission now and into the future. Thank you CJP and congratulations!

Kathryn Comeaux, Murray State University Marguerite Gelinas, University of Maryland, College Park Joy Goldschmidt, Western Michigan University Daniel Harting, University of Maryland, College Park Kianna Hawkins, Howard University Riley Jorgenson, Maine Maritime Academy Addison Lash, Massachusetts Maritime Academy Grayson Locke, Middle Georgia University Jordon Mayo, University of Memphis Brian McCauley, Old Dominion University Evan K. Ramsey, University of Tennessee-Knoxville Grayson Steigler, Northeastern University Madison Thurston, Western Michigan University Trevor Webb, SUNY Maritime College Benjamin Weisel, University of Virginia Brett Williams, University of Houston PROGRAM B

Ryan Adcock, Purdue University Andrew Artaserse, California State University Maritime Academy Jordan Coleman, The University of Texas at San Antonio (USTA) Dylan Gilley, University of Kentucky Eric Adrian Madrigal, California State University, Stanislaus Robert McKee, Jr., University of Missouri Mary Powers, Modesto Junior College Sophia E. Rupkalvis, University of North Carolina at Chapel Hill Alex Santiago-Anaya, Virginia Tech CHRISTOPHER NEWPORT UNIVERSITY NATIONAL SECURITY SCHOLARSHIPS

Emily Baer • Matthew McKeon • Moriah Poliakoff NDTA ACADEMIC SCHOLARSHIP PROGRAMS NDTA offers four scholarship/tuition assistance programs to NDTA members and their financial dependents. • ACADEMIC SCHOLARSHIP PROGRAM A: To encourage good college students to study the fields of logistics, transportation, supply chain, physical distribution, and passenger travel services. • ACADEMIC SCHOLARSHIP PROGRAM B: To assist high school graduates achieve their academic goals in the fields of business/ management, logistics, transportation, supply chain, physical distribution, and passenger travel services. • ACADEMIC SCHOLARSHIP PROGRAM C: To encourage good distance learning college students to study the fields of logistics, transportation, supply chain, physical distribution, and passenger travel services. • CHRISTOPHER NEWPORT UNIVERSITY NATIONAL SECURITY SCHOLARSHIPS: This scholarship will provide financial assistance to students studying in a field that supports the US national defense. Up to three scholarships will be awarded annually to students studying in US national security studies and are junior fellow in the Center for American Studies at Christopher Newport University. NDTA scholarship/tuition assistance funds can only be disbursed to an academic institution on behalf of the successful applicant. If the institution is not known at the time an application is submitted, the successful applicant must submit documentation showing that he/she has in fact been accepted by an institution as a full-time student before disbursements can be made. www.ndtahq.com |

NDTA CORPORATE DISTINGUISHED SERVICE AWARDS This award is presented annually to corporate members that have provided outstanding service in support of NDTA’s goals and programs at the local and national levels. AAR CORP.

CSX Transportation

Agility Defense & Government Services

CWTSatoTravel

Sabre

AIT Worldwide Logistics, Inc.

Deloitte

SAP Concur

Omni Air International, LLC

American President Lines, LLC

DHL Express

Savi

American Roll-on Roll-off Carrier

Enterprise Holdings

Schuyler Line Navigation Company LLC

Amtrak

FedEx

Southwest Airlines

Anacostia Rail Holdings

Freeman Holdings Group

The Pasha Group

ArcBest

Global Logistics Providers

TOTE

Atlas Air Worldwide

Goldratt Consulting North America LLC

Transportation Institute

Avis Budget Group

Hapag-Lloyd USA, LLC

Travelport

BCD Travel

International Auto Logistics

Tri-State

Bennett Motor Express, LLC

Landstar System, Inc.

U.S. Bank Freight Payment

BNSF Railway

Liberty Global Logistics LLC

United Airlines

Boyle Transportation, Inc.

Maersk Line, Limited

UPS

Central Gulf Lines

National Air Cargo, Inc.

US Ocean, LLC

Crane Worldwide Logistics, LLC

Norfolk Southern Corporation

Western Global Airlines

Crowley

Omega World Travel

Wyndham Hotels & Resorts, Inc.

NDTA INSTRUCTOR OF THE YEAR AWARD In conjunction with the senior logistics chiefs from each of the Services, the NDTA Instructor of the Year Awards honor instructors from the service transportation schools. Criteria for award selection are established by the military services and include such measures as the individual’s technical knowledge, teaching skills, self-development, and general leadership abilities.

ARMY

SFC Wayne K. St Croix, USA 58th Transportation Battalion Fort Leonardwood, Missouri

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ARMY NATIONAL GUARD

SSG Susan M. Delaney, USANG 2nd Battalion, 426th Regiment Fort McCoy, Wisconsin

ARMY RESERVE

SSG Godfrey Mbulo, USAR

7/104th TC BN Transportation Battalion Bell, California

NDTA MILITARY UNIT OF THE YEAR AWARDS Since 1966, NDTA has honored units of the military services that have performed outstanding service in transportation or a related field. These units are selected for this recognition by each of the services.

Army US ARMY ACTIVE COMPONENT

97th Transportation Company (Heavy Boat) 10th Transportation Battalion (Terminal) Fort Eustis, Virginia

97th Transportation Company has been at the forefront of 10th Transportation Battalion (Terminal), and 7th Transportation Brigade (Expeditionary). 97th Transportation Company (Heavy Boat) provides waterborne transportation of cargo, equipment, and personnel during intratheater lift, water terminal, and waterborne tactical, joint amphibious, riverine, and logistics-over-the-shore operations. During the Fiscal Year 2019 (FY 19), 97th Transportation Company continuously demonstrated the importance of Army watercraft to the operational environment by providing outstanding support to a vast array of customers via both pier side and underway missions. The unit completed over 250 real-world operations, sailing over 140,000 nautical miles, transporting over 20,000 short tons of cargo during underway in support of various Combatant Commands (COCOMs), Joint, Interagency, Intergovernmental, and Multinational (JIIM) agencies, and the US Army Maritime and Intermodal Training Department (MITD). The unit distinguished itself by providing a training and cargo platform to high-profile strategic operational events. Some examples are US Army South (ARSOUTH) 2019 during Operation Tradewinds, US Pacific Command (PACOM) in support of Pacific Utility and Logistics Support Enablers - Watercraft (PULSE-W) IX and X, and US Central Command (CENTCOM) in support of Operation Spartan Shield. The unit has also supported the US Coast Guard Marine Security Response Team training exercises, US Navy Special Warfare Group, the Hampton Roads Fire Fighter’s Association, and the Marine Incident Response Team among others.

97th Transportation Company has Soldiers deployed around the world in three different COCOMs. During the firstquarter of fiscal year 2019, the unit deployed one crew to the PACOM area of responsibility in support of PULSE-W. The unit has provided continuous support to the CENTCOM AOR and Operation Spartan Shield, a combined forces contingency operation tasked with protecting vital US interests in Kuwait. Two crews have deployed to the CENTCOM Area of Responsibility (AOR), and a second crew deployed to Japan in support of PULSEW. 97th Transportation Company leads the Battalion and Brigade in all matters of maritime missions with excellence. The “Beachmasters” plan, train, and execute all efforts with attention to detail, discipline, passion, and flexibility according to US Army Doctrine, and national and international maritime regulations.

Marine Corps USMC ACTIVE COMPONENT

3d Transportation Support Battalion (3d TSB) Combat Logistics Regiment 3 (CLR-3), 3d Marine Logistics Group (MLG), III Marine Expeditionary Force (III MEF) Okinawa, Japan

3d Transportation Support Battalion distinguished itself in the superior performance of its duties while assigned to CLR-3, MLG, III MEF, while forward deployed. The battalion’s actions were key in providing both direct support and general transportation support to all III MEF units aboard Okinawa and throughout the Indo-Pacific Area of Responsibility. 3d TSB successfully accomplished over 1,300 transportation missions, drove over 95,000 road miles aboard Okinawa, and the Republic of Korea (ROK), and conducted more than 6, 190 hours of maintenance. The battalion provided direct and general support during exercises: KOREA

MARINE EXCHANGE PROGRAM (KMEP) 18.2, FREEDOM BANNER 18 (FB18), SSANG YOUNG 18 (SY18), and KODIAK MACE 2018 (KM18). 3d TSB has demonstrated excellence and proficiency in all aspects of transportation operations including local and line haul convoys, refueling operations, movement control, and landing support operations. Throughout 2018, 3d TSB provided sustained general and direct transportation support to III MEF units training aboard Okinawa and throughout the Pacific region. This sustained performance has enabled TSB and the supported units to sustain high operational tempo, increased interoperability, and improve training readiness in order to be the “Fight Tonight” force. 3d TSB’s successful completion of transportation support operations to III MEF and their steadfast dedication cannot be over emphasized, as they remained the Workhorse of the Pacific. 3d Transportation Support Battalion has distinguished itself throughout 2018, for sustained superior performance across all functions of transportation operations. The Battalion operated across the IndoPacific Area of Operations and provided direct and general support to the units of III Marine Expeditionary Force in both garrison and deployed environments. Throughout the year, 3d TSB completed more than 1,200 motor transport missions; transporting 5,000 tons of cargo, 9,000 PAX over 85,000 miles, conducted over 6,100 hours of maintenance, and processed 35,000 personnel, and 6,100 tons of cargo through the III MEF AIDACG on Kadena Air Base. The battalion deployed two times to the Korean Peninsula in support of banner exercises: KOREA MARINE EXCHANGE PROGRAM 18.2, FREEDOM BANNER 18, and SSANG YONG 18, and sent smaller detachments to support numerous other exercises. During the exercises the battalion provided unparalleled support, including transportation, landing support, and on-call maintenance support in conduct of mission rehearsals. The battalion participated in the first full maritime prepositioning force (MPF) download on the www.ndtahq.com |

Korean peninsula and conducted multiday line haul operations to operationalize the MPF equipment. On Okinawa, the Battalion conducted two major air delivery operations: the first joint precision air drops system (JPADS) employment on Okinawa and successfully rigged and inserted an operational MRZR all-terrain vehicle. Through its efforts, 3d TSB ensured the forward deployed forces of III MEF were able to maintain their momentum from deployment through redeployment, and continue to operate throughout. 3d TSB’s dedication to III MEF has reflected great credit upon themselves and upheld the highest traditions of the Marine Corps and the US Naval Service.

USMC RESERVE COMPONENT

Logistics Directorate (G-4) Marine Forces Reserve (MARFORRES) New Orleans, Louisiana

United States Marine Corps Forces Reserve (MARFORRES) is an organization unlike any other in the Marine Corps. MARFORRES units are distributed over 160 different Home Training Centers (HTCs) that span across 47 states, the District of Columbia, and the Commonwealth of Puerto Rico. The majority of units are geographically separated from their higher headquarters, creating aggregation challenges that present complex and demanding transportation and logistics requirements that necessitate effective, time-sensitive solutions. The unique structure of this organization requires all transportation and logistics requirements to be coordinated through this Corps-level Headquarters (G-4, Logistics Directorate) for appropriate sourcing, which creates a high-volume work environment yearround. In calendar year 2018 alone, demand for Reserve support increased 263% over the previous year while MARFORRES increased its role as an operational reserve in support of Global Force Management (GFM) requirements and deployed forces in support of all six Geographic Combatant Commands (GCC). These operational deployments met Service commitments, focusing on combat operations, crisis prevention. crisis response, and theater security cooperation. The MARFORRES G-4 Logistics Directorate’s ability to coordinate the 46

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transportation and logistics requirements for more than 2,135 deploying Marines supporting 35 operational requirements across the globe and nearly 14,000 Marines participating in 76 training exercises in 41 countries, made a tremendous and tangible impact across a diverse spectrum of operations. The G-4 continues to focus on process improvements, finding efficiencies within its unique organizational transportation procurement processes and increasing customer support responsiveness, while maintaining a focus on fiscal accountability and responsibility. The complex transportation demands that MARFORRES fulfills on a daily basis is unmatched on the active duty side. MARFORRES G-4 continues to demonstrate its ability to effectively and efficiently move a force anywhere in the world on time and on target. These transportation and logistics professionals have enabled MARFORRES to accomplish its mission as an operational reserve and to be the force multiplier that augments and reinforces the Active Component of the Marine Corps during contingencies, crises, and any other directed missions.

Navy US NAVY ACTIVE COMPONENT

Naval Supply Systems Command (NAVSUP) Fleet Logistics Center Sigonella, Italy Naval Supply Systems Command Sigonella, Italy

Naval Supply Systems Command, Fleet Logistics Center (NAVSUP FLC) Sigonella, Italy is the designated lead for naval traffic management, personal property, postal, and ocean terminal operations in Europe and Africa. Covering 29 million square miles of land and sea operating space, these essential services provide agile theater logistics support to deployed US Maritime, Joint, Combined, and Allied Forces. In late 2018, a short-notice mobilization occurred in the Northern Europe region revealing serious transportation and logistics shortfalls. In a coordinated effort to bridge this gap and support the largest NATO exercise in 40 years, TRIDENT JUNCTURE 2018, NAVSUP FLC Sigo-

nella secured joint logistics capability in Norway, United Kingdom, and Iceland. Exercising concepts of Dynamic Force Employment, they engaged an agile global distribution network that linked 10,000 vehicles, 250 aircraft and 65 combat-ready ships, to support 50,000 troops from 31 partner nations. This allowed Joint Forces to be strategically predictable while remaining operationally unpredictable. The front-line logistics efforts by the NAVSUP FLC Sigonella Transportation Team forged theater coalition partnerships crucial to deterring Russian resurgence in Europe. NAVSUP FLC Sigonella’s execution of their logistics support services mission was the product of highly skilled transportation experts working with key global logistics partners to create practical economical solutions to support dynamic naval force employment and complex Joint Operations anywhere, anytime!

US NAVY RESERVE COMPONENT

Navy Cargo Handling Battalion Thirteen (NCHB-13) Fourth Navy Expeditionary Logistics Regiment Gulfport, Mississippi

Navy Cargo Handling Battalion THIRTEEN (NCHB-13), Gulfport, MS delivers expeditionary logistics for the geographic Combatant Commanders, Naval Component Commanders, and Commander Navy Expeditionary Combat Command. All of which directly support National Military Strategy. NCHB-13 is a commissioned Navy Reserve battalion with skilled Sailors charged with conducting warehousing, cargo transport, ordnance handling, tent camp operations, expeditionary fuel operations, surface cargo handling and port terminal operations, and air cargo handling and air terminal operations. As evident in calendar year 2018’s multitude of accomplishments, the unit’s motivated members pride themselves in professional development and mission success. NCHB-13 Sailors trained and operated on three different continents during the year. The supported events ranged from being pier side on the East Coast (US) to supporting forces in Middle East deserts to combat logistics support in Africa. The nature of the Reserves requires Sailors to honor the demanding rigors of the Navy while maintaining the responsibilities of

their civilian careers. NCHB-13’s Sailors certainly upheld their responsibilities to the nation in 2018; in doing so, the battalion is certainly deserving of the 2018 National Defense Transportation Association (NDTA) Military Unit Award.

Air Force USAF ACTIVE COMPONENT

502d Logistics Readiness Squadron (LRS) Air Education and Training Command Joint Base San Antonio-Lackland, Texas

The 502d Logistics Readiness Squadron (LRS) is the Air Force’s largest LRS. Their efforts powered the Department of Defense’s largest joint base, supporting 82,000 personnel, 266 mission partners and managing a $1 billion logistics portfolio. As a transportation life-line for Air Force pilot training, the team distributed 8,300 parts and 8.2 million gallons of fuel that generated 28,000 sorties, ensuring the certification of 328 pilots. Additionally, they guided the Secretary of Defense’s return to readiness directive, organizing 57 ability to survive and operate (ATSO) evaluations, and moving more than 2,600 members to enable training to increase combat capabilities. Moreover, the team shouldered medical evacuation missions, supporting 252 aircraft with assets and personnel, to expedite treatment for 368 wounded warriors. The unit tackled an enterprise wide safety recall, replacing 325 tires on 65 Humvees in less than 45 days, keeping special warfare combat training rolling for 8,000 technical trainees. In addition, the 502 LRS oversaw AETC’s 2nd largest centrally billed account, processing travel tickets to move 12,000 passengers, totaling $3.5 million and covering 450 training courses, sustaining the Air Force’s “Gateway Wing.” Demonstrating initiative, the team lobbied and received $50,000 for innovation, de-

veloping a secure application for 30 bus routes, enhancing service for 1.4 million users. Furthermore, they surged transportation support in response to border operations, directing 24/7 ops at 3 locations and moving 1,800 soldiers and 210 tons of cargo to secure the US southern border. Leading the way, the 502d LRS guided American Expeditionary Forces obligations by deploying 1,000 personnel and 12 tons of cargo, enabling global combat missions. The transportation efforts of this dynamic unit were critical to serving 2 million customers and management of 2,200 vehicles which was crucial to 502 LRS earning this prestigious award, upholding their motto “Team LRS… America’s Best!!!

US AIR FORCE RESERVE COMPONENT 73rd Aerial Port Squadron Air Force Reserve Command A4 Naval Air Station Fort Worth Joint Reserve Base, Texas

Air Force Reserve members from the 73rd Aerial Port Squadron have consistently exceeded expectations during their support of Department of Defense transportation missions in the continental United States and downrange at numerous global locations. In 2018, the 73rd Aerial Port once again exemplified the Total Force Concept by seamlessly integrating into some of Central Command’s busiest aerial ports while simultaneously maintaining wing exercise and deployment support at home station to assure mission success. The manifestation of the squadron’s reputation for excellence in all efforts extended beyond receiving unit-level awards, as members received individual recognition in the form of Airman, NCO, and SNCO category awards; challenge coins from Joint Services and Air Force leaders; as well as decorations presented by sister services. Furthermore, the squadron’s remarkable efforts and accomplishments echoed through the echelons of Air Force leadership by word of mouth both at home and abroad, reflected in the

selection of 73rd Aerial Port members for forward deployment to key staff positions while downrange. During the 2018 calendar year, the squadron deployed 36 Airmen to the US Central Command’s area of responsibility in support of Operations INHERENT RESOLVE, RESOLUTE SUPPORT, and SPARTAN SHIELD. While there, these Airmen directly contributed to, among other things: the stand-up of the new Erbil Air Base passenger terminal projected to handle 45,000 passengers annually; accelerated movement of helicopters, vehicles, and ammunition associated with coalition surges and equipping warfighters downrange; the inaugural State Department in-theater channel missions resulting in $3.7 million in savings; expedited airlift of mission-impacting intelligence, surveillance, and reconnaissance assets to thwart adversaries’ efforts; expansion of cargo holding areas to significantly increase throughput capability; improved in-theater cargo processing with a consequent impressive reduction in port hold times and cargo backlogs; implementation of new deployment/redeployment processes to reduce processing time by 39% and facilitate troop surges; and support of the emergency evacuation of one thousand Americans from the US Consulate in Iraq. At home, Airmen supported redeployment of 301st Fighter Wing assets, excelled during table-top exercises intended to measure the ability to rapidly deploy Airmen, developed innovative solutions to resolve readiness-affecting issues, and established the premium benchmark in the 301st Mission Support Group for upgrade training completion percentages. The 73rd Aerial Port’s accomplishments exemplify its embodiment of both the Air Force’s third Core Value, “Excellence In All We Do” and the 301st Fighter Wing’s mission to “train and deploy combat-ready Airmen.” Members of the 73rd Aerial Port, from the newest Airman to the longesttenured member, personify the squadron’s long legacy of commitment to the neverending pursuit of an outstanding mission accomplishment. DTJ

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THE NEXT 75 The Future of NDTA By MG David A. Whaley, USA (Ret.)

As NDTA celebrates and reflects on the past 75 years, it’s important to also consider what the future will bring for the organization and its members. To that end, we have asked several members and friends of the association to tell us, “what do you think the next 75 years will be like for NDTA?”

uffice it to say 75 years from now our world will be extremely different in every aspect of business, life, warfare, defense and human existence overall. Below are just a few of the numerous areas of change that may be encountered in the future. Some change characteristics to ponder: • The depth, breath and magnitude of change will impact EVERYTHING and EVERYBODY. • The speed in which change will happen will increase exponentially. • Humans and technology will nearly merge, in many ways, into one entity. Nano technology combined with genetic engineering will change us. Just think what the cell phone has done to change us. • Human knowledge and information in general will grow at an ever-increasing rate. • Everyone and almost everything will be “connected” to each other in one way or another. • Quantum computers and the next generation thereof will exceed all our analytical speed and application expectations. • Our day-to-day world will expand beyond the earth and into outer space in every way. • We must try to manage these forthcoming changes for they WILL happen. We can choose to engage these changes and attempt to manage/shape them or choose to become a victim of them and be left behind. 48

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I suggest that choosing to engage and try to manage/shape the forthcoming changes is the preferred approach. Therefore, the question becomes “WHAT DO WE DO?” NDTA has taken a great first step forward by asking the thought-provoking questions that must be turned into action.

Form national and international alliances with tangential interrelated institutions, business and organizations that are causing or leading change, such as other business associations, other governmental agencies, universities, research and development entities (private, corporate and governmental).

Suggested follow-on actions: • Include change management and emerging technologies in every organization’s mission, vision and values statements, as well as every NDTA educational endeavor, conference, publication, etc. • Form national and international alliances with tangential interrelated institutions, business and organizations that are causing or leading change, such as other business associations, other governmental agencies, universities,

research and development entities (private, corporate and governmental). • Become a player in emerging technology. Expand NDTA’s membership to include more technology organizations and/or form affiliations with them. • Become the facilitator for current/future membership to engage/shape in the forthcoming “Change Tsunami”. • Include change and technology in every NDTA annual meeting and every conference inviting expert guests to discuss these topics. • Send representatives to technologybased seminars and conventions, and report to the membership. • Create a monthly technology and change management section within the website and send reports electronically to the membership and affiliates. • Create an affiliate membership category for select technology organizations (businesses, universities, centers, etc.) • Solicit commercial, private, DOD and other Federal agencies and governmental entities—such as DARPA, National Technical Information Services (NTIS), etc.—to participate and/or become affiliates. • Create an NDTA committee that addresses technology across disciplines and borders as to how to best manage change. • Create a technology scholarship with obligations back to NDTA. While we cannot predict the future, I am certain that change will happen and over the next 75 years the magnitude of

change will be monumental, and the speed of this change will be, at best, surprising. I have mentioned some of the changes that are likely to happen, but those indicated are certainly not all inclusive. I suggest that given there will certainly be great changes in the future, these changes will likely impact everyone and nearly everything. It is therefore clearly prudent to: • Proactively acknowledge this eventuality; • Deliberately and systematically engage, manage and participate in the process; • Attempt to shape and anticipate its impact and to act, not waste time and effort pondering too long; • Find balance between the leading/ bleeding edge of change and being left behind; • Do not try to manage this in a vacuum; • Seek partners, affiliates, cohorts, etc. and team with them; • Recognize that change creates opportunities and try to take advantage of them; • While many things will change, remain a guardian of your values and culture, which should remain relatively constant;

“The first step towards change is awareness.” – Nathaniel Branden

“Those who expect moments of change to be comfortable and free of conflict have not learned their history.” – John Wallach Scott

“Change before you have to.” – Jack Welch

“Change is inevitable. Change is constant.” – Benjamin Disraeli

“Change is the law of life. And those who look only to the past or present are certain to miss the future.” – John F. Kennedy

“The world hates change, yet it is the only thing that has brought progress.” – George Bernard Shaw

“Time is the dressmaker that specializes in alterations.” – Faith Baldwin

• Proactively, routinely and visibly reinforce your corporate values and maintain your corporate culture; • Keep the in mind that there will still be humans involved/impacted, and their

ability to accept change is individual and is not universally the same; • Become a facilitator and integrator of change, change management and technological advancement. DTJ

SeaCube is proud to support the US military in peace and conflict Visit www.seacubecontainers.com for more information

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TRAVEL SPOTLIGHT Bridging the Gap Between Travel Buyers and Travelers By Joel Wartgow • Director, Marketing and Communications, CWTSatoTravel

hough different in certain aspects, hotel category management in both the commercial and government sectors face similar challenges in striving for the shared goal of reducing program costs for travel managers and travelers. In a recent survey conducted by GBTA and RoomIt , travel buyers identified their top goals of 2019 as reducing program costs and increasing policy compliance. While commercial organizations and Federal Government entities share the same ultimate goal, the survey uncovered some disparity between how travelers and travel managers approach controlling program costs, increasing compliance and improving traveler satisfaction. At the 2019 GovTravels conference, results of the survey were presented, generating lively discussion amongst the participants about some of the common challenges all organizations face when trying to manage the hotel category. Below are some highlights from the findings. When it comes to the goal of savings, travel buyers and travelers often differ in their approach to booking and viewing potential savings. Travel managers are not looking at savings rate-by-rate, but instead focus on overall compliance. Travelers, however, feel that they can find better rates on their own, which ultimately increases costs by diluting negotiating power and the advantage of flexibility and benefits available when booking the organizations desired hotels through official channels. Education is necessary to ensure that trav-

elers follow the correct path to booking the correct hotel rates. With this in mind, there are ways to bridge the gap between the goals of travel buyers and travelers by considering the factors that lead to booking outside of approved channels. Some of these reasons include, but are not limited to: 1. Lack of availability of lower rates at or below per diem within approved channels 2. Ease of finding a hotel close to their destination 3. Perception of availability 4. Travelers don’t have a clear understanding of what is in policy 5. Preferred hotels are outside of policy, so they cannot earn loyalty points

Cont’d from Pres. Corner pg. 17

Also, in this edition of the DTJ, transportation, logistics, travel and related industries have been inundated with new technologies over the past decade and even more innovations are on the horizon. This issue will look at technologies poised to impact air, maritime, trucking and rail, as well as showcase the evolution of existing technologies.

my deepest thanks to them for their interest in furthering the NDTA mission. I have said it before, but I will say it again, the military is fortunate to have such dedicated industry partners. Let’s keep it going! 50

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Enforcing policy compliance is the most challenging and important aspect of managing a hotel program. When travelers book outside of the approved channels, it becomes difficult to determine if hotel spend has been optimized. This also raises an issue in negotiating participation in hotel programs. Not surprisingly, in the commercial sector, the survey uncovered that travelers feel that they are more compliant than they truly are. Government travel managers face similar compliance challenges as well. For example, a high percentage of hotel bookings are currently made outside of official government channels. This affects a travel manager’s visibility and ability to manage this spend category. Travelers from

both sectors claim that challenges in finding hotel availability create the need to book outside of preferred channels. However, further investigation shows that rates are available through official channels, just not at the hotel a traveler may prefer which drives the non-compliance. To improve compliance in the commercial sector, one innovative solution is to offer hotel loyalty points when travelers book the right rate, at the right hotel, through the preferred channel. Current laws and regulations prevent this type of solution from being deployed in the government sector, meaning that travel managers may need to get more creative to help improve compliance. In reviewing the survey results, there are many more similarities than differences in the challenges travel managers face in managing the hotel category in both the Government and Commercial sectors. The gaps in how travel managers and travelers view the same problem exist across the board. Because the sectors are more similar than different, there is much that can be learned by sharing best practices and strategies. Although not a ground-breaking solution, continual education and training is the foundation for a strong program. Travel managers need to be transparent with travelers on program objectives and requirements. DTJ For more insights on the travel world, join us for GovTravels February 24-26, 2020 at the Hilton Mark Center in Alexandria, Virginia.

One of our goals at NDTA is to be more searchable with regard to the articles and information we publish. You should start seeing the results of that as we shape our goals for 2020—which I will share in the next edition of the DTJ. Stay tuned in and be part of the team who contributes to the DTJ ! DTJ

PROFESSIONAL DEVELOPMENT Highlights from Transportation Academy Irvin Varkonyi • NDTA Educational Coordinator, ivarkonyi@ndtahq.com

e hope that many of our readers are fortunate to be attending Transportation Academy and taking advantage of the opportunity to sit in on many of our nearly 80 classes at the 2019 Fall Meeting. Professional Development in the workplace consists of continuous learning and exchanging current knowledge in your field with subject matter experts. Well over 100 instructors and panelists are present to guide you and help achieve your professional goals. Those attending the Fall Meeting will be eligible to earn Continuing Education Units (CEUs) from McKendree University in Lebanon, Illinois. See more information on the NDTA Fall Meeting website. Transportation Academy was divided into ten tracks, each offering a diversity of topics that are critical to national security and how the nation carries out its transportation and logistics mission. Many sessions focus on the basics of doing business with USTRANSCOM and its affiliated commands and agencies. Most prominent is SDDC which offers its own track. USTRANSCOM Acquisitions (TCAQ) offers several perspectives on the process of acquisition. Our Combatant Commands and Security Cooperation track features global perspectives. This track includes a panel on European logistics featuring a representative from the UK Ministry of Defence, BG Nigel Allison. The challenges for global distribution have increased as the operations tempo has picked up in Europe, the Middle East and Asia. This session commands a lot of attention. Some of the other tracks include:

COMMERCIAL LOGISTICS – THE BASICS OF TRANSPORTATION AND LOGISTICS WITH COMPLEX CHALLENGES

Our Commercial Logistics track includes overviews of many of our basic transportation modes which will help our military workforce better understand how these

modes work. Several sessions will go into great depth on these topics. Dr. Jakub “Kuba” Wrzesniewski will cover a timely topic—introducing attendees to the distinctive strategic thinking and politicoeconomic model of the People’s Republic of China, prospects for the future balance of power in Asia, and new and emerging forms of conflict between the two powers with an emphasis on their impact on commercial logistics operations and DOD logistics demand. DOD TRANSPORTATION – COMBINING MILITARY AND INDUSTRY EXPERTS

Technology evolves rapidly and challenges the military and industry to adapt, anticipating that the enemy is doing the same. Blockchain is a key component in DOD transportation challenges. A unique panel brings together three of the globe’s largest express shipping organizations—DHL, FedEx and UPS to shared experiences on utilization of Blockchain. Where authenticity is critical, Blockchain will become transformative, which gets you to things like global clearance, the global supply chain, health care, and aerospace. How will we get there? Blockchain uses an open model to build out the protocols which will require ‘coopetition’, merging cooperation and competition, between and across industries, and around the world. Such standardization, bringing together these global firms will truly be of interest to all. INTERACTIVE WORKSHOPS – ENGAGING LEARNERS IN LIMITED SEATING CLASSES

The success of our interactive workshop in 2018, inspired us to plan four of them for this year. Individual instructors representing McKendree University, Goldratt Institute and the St. Louis chapters of APICS and NDTA will engage attendees through interactive examples on topics including,

“Preparing for the Digital Future of Logistics,” “Applying Theory of Constraints to Supply Chain Management,” “Principles of FLOW – How to Create Throughput in Your Organization,” and “Sales and Operations Planning.” Seating is limited. We hope attendees will take advantage of these opportunities to engage in focused, interactive learning. IT AND CYBER – OPPORTUNITIES AND THREATS

Our goal in this track is to bring clarity to the rewards organizations gain from efficiently applying informational technology, as well as the risks faced by both government and industry. Representatives from Holland and Knight Law, Washington, DC, offer important overviews to attendees. Cybersecurity mandates for both the transportation and defense sector have evolved and are becoming increasingly complex. Is your organization ready? Separate mandates now exist for both sectors, combined these mean greater regulatory, legal and policy requirements on all in the national defense transportation sector. The US Departments of Defense and the Homeland Security are rolling out new mandates that are critical for the sector to understand. DOD contractors will soon see new standards and a requirement for third-party certifications. Cyber risk in supply chains, both for component parts and for vendors, has increased dramatically. P.L. 115-232, the FY 20 Intelligence Authorization Act and the FY 2020 National Defense Authorization Act (NDAA) include a host of new supply chain security and cybersecurity mandates critical for all in the defense and transportation sectors to understand. USTRANSCOM Command, Control, Communications and Cyber Systems (TCJ6), responsible for coordinating and managing cyber threats, will discuss “SharSee Prof. Devel. pg. 54 www.ndtahq.com |

CHAIRMANâ&#x20AC;&#x2122;S CIRCLE

These corporations are a distinctive group of NDTA Members who, through their generous support of the Association, have dedicated themselves to supporting an expansion of NDTA programs to benefit our members and defense transportation preparedness.

AAR CORP. + PLUS Agility Defense & Government Services + PLUS AIT Worldwide Logistics, Inc. + PLUS American President Lines, LLC + PLUS American Roll-on Roll-off Carrier + PLUS Amtrak + PLUS Atlas Air Worldwide Holdings + PLUS Bennett Motor Express, LLC + PLUS Boyle Transportation, Inc. + PLUS Chapman Freeborn Airchartering, Inc. + PLUS Crane Worldwide Logistics, LLC + PLUS Crowley + PLUS Deloitte + PLUS DHL Express + PLUS DSV Panalpina A/S + PLUS Enterprise Holdings + PLUS FedEx + PLUS Freeman Holdings Group + PLUS Goldratt Consulting North America LLC + PLUS Hapag-Lloyd USA, LLC + PLUS International Auto Logistics + PLUS Landstar System, Inc. + PLUS Liberty Global Logistics-Liberty Maritime + PLUS Maersk Line, Limited + PLUS National Air Cargo, Inc. + PLUS Omni Air International, LLC + PLUS SAP Concur + PLUS Schuyler Line Navigation Company LLC + PLUS The Suddath Companies + PLUS TOTE + PLUS Tri-State + PLUS United Airlines + PLUS US Ocean LLC + PLUS Western Global Airlines + PLUS Amerijet International, Inc. Anacostia Rail Holdings Berry Aviation, Inc. BNSF Railway Bristol Associates Choice Hotels International Crowe LLP CSX Transportation CWTSatoTravel DGC International 52

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Echo Global Logistics, Inc. Global Logistics Providers JM Ship, LLC KGL Holding Matson mLINQS National Air Carrier Association Norfolk Southern Corporation

Sealift, Inc. Telesto Group LLC The Pasha Group The Port of Virginia Transportation Institute U.S. Bank Freight Payment Union Pacific Railroad UPS Waterman Logistics Wyndham Hotels & Resorts, Inc.

HONOR ROLL

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

SUSTAINING MEMBERS AAT Carriers, Inc. ABODA by RESIDE Accenture Federal Services Adaptive Cargo Solutions, LLC Admiral Merchants Motor Freight, Inc. Air Transport International, Inc. Airlines for America Al-Hamd International Container Terminal AMAC Logistics LLC American Maritime Officers American Moving & Storage Association American Trucking Associations ArcBest Army & Air Force Exchange Service Arven Services, LLC Associated Global Systems Atlas World Group International ATS Specialized, Inc. Avis Budget Group Baggett Transportation Company BCD Travel Benchmarking Partners, Inc. Best Western International Boeing Company Bolloré Logistics C.L. Services, Inc. CarrierDrive LLC Club Quarters Hotels

REGIONAL PATRONS ACME Truck Line, Inc. Agile Defense, Inc. Amyx Apex Logistics International Inc C5T Corporation CakeBoxx Technologies Cartwright International Cavalier Logistics Chassis King, Inc. Columbia Helicopters, Inc. Dalko Resources, Inc.

Construction Helicopters, Inc. (d/b/a CHI Aviation) Cornerstone Systems, Inc. Council for Logistics Research Delta Air Lines Duluth Travel, Inc. (DTI) Ernst & Young Estes Forwarding Worldwide, LLC Europcar Car & Truck Rental Eurpac Evanhoe & Associates, Inc. Excl Hospitality – Suburban Suites/MainStay Suites Extended Stay America Hotels FlightSafety International GeoDecisions Getac Greatwide Truckload Management Green Valley Transportation Corp. Hertz Corporation Hilton Worldwide Intercomp Company Intermodal Association of North America (IANA) International Association of Movers International Longshoremen’s Association (ILA), AFL-CIO Interstate Moving | Relocation | Logistics Keystone Shipping Co. KROWN1 FZC Kuehne + Nagel, Inc. LMI

Marine Engineers’ Beneficial Association Marriott International Martin Logistics Incorporated Mayflower Transit McCollister’s Transportation Systems, Inc. McKinsey & Company Mercer Transportation Company National Motor Freight Traffic Association, Inc. National Van Lines, Inc. Northern Air Cargo Inc. Oakwood Worldwide Omega World Travel Omnitracs, LLC One Network Enterprises, Inc. Oracle ORBCOMM PD Systems, Inc. Perimeter Global Logistics (PGL) Pilot Freight Services Port of Beaumont Port of San Diego Ports America Portus Preferred Systems Solutions, Inc. Prestera Trucking, Inc. Priority Solutions International Priority Worldwide Professional Drivers PTS Worldwide Radiant Global Logistics

Radisson Hotel Group Ramar Transportation, Inc. Roadrunner Transportation Systems Sabre SAIC Savi Savino Del Bene SeaCube Containers Seafarers International Union of NA, AGLIW Sixt rent a car LLC Skylease 1, Inc. Southwest Airlines St. Louis Union Station Hotel a Curio Hotel Collection by Hilton TMM, Inc. Toll Global Forwarding Transport Investments, Inc. Transportation Intermediaries Assn. (TIA) Travelport Trusted InternetTSA Transportation LLC TTX Company Tucker Company Worldwide, Inc. United Van Lines, Inc. Universal Logistics Holdings, Inc. USA Jet Airlines Vetcom Logistics Wapack Labs Corporation Women In Trucking Association, Inc. YRC Freight

Enterprise Management Systems Erudite Company HLI Government Services JAS Forwarding John D. Odegard School of Aerospace Sciences Kalitta Charters, LLC Kansas City Southern Lineage Logistics LMJ International Logistics, LLC Lynden, Inc. MacGregor USA, Inc. Move One Logistics

NFI North Carolina State Ports Authority NovaVision Inc. Overdrive Logistics, Inc. Owner-Operator Independent Drivers Association Patriot Contract Services, LLC PITT OHIO Port Canaveral Port of Port Arthur Seatac Marine Services TechGuard Security Trans Global Logistics Europe GmbH

UNIVERSITY McKendree University University of Illinois at UrbanaChampaign

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Cont’d from 75th Anniversary pg. 16 99.9 percent success rate—would you be as pleased as you were with your golf game score? At that rate, doctors would operate on the wrong patient 500 times each week. Federal Express [FedEx] has estimated that if their accuracy rate was only 99.9 percent, they would be losing 2,000 packages every night. And at 99.9 percent, the United States Post office would lose 17,000 pieces of mail per hour. So while we might think of 99.9 percent accuracy as being good, it’s all relative. There’s a true story—it happened back in 1968—to a pilot for Japan Airlines who was flying from Tokyo to San Francisco. As he was beginning his approach into San Francisco, he lost all communications with the control tower. As a result, he brought his DC-8 down through the clouds, three miles short of the runway, and made a perfect water landing in the San Francisco Bay. In discussing the incident later, the pilot explained the error in terms of the total flight. He said, “Considering that I traveled all the way from Tokyo, I didn’t miss by much.” That’s not even 99.999 percent accuracy. Quality is never an accident. It is always the best of high intentions, sincere effort, intelligent direction and skillful execution. The people we want and need are the ones who can identify what needs to be done and do it. Do you remember Ford’s advertising slogan “Quality is Job Number One?” We recognize that individual Service staffs are no longer responsible for fighting America’s wars, unified combatant commanders are. And because of that, the way we go to war has changed. Our goal is to identify the most critical characteristic and concepts required in a defense transportation system for the twenty first century. We must move to a concept that is currently standard throughout the commercial transportation sector—the concept of one-

stop shopping. Deploying units and war fighting CINCs [combatant commandersin-chief ] will have a single point of contact for all intermodal operations. We must apply the ninety-nine point nine percent rule to ourselves. If we were the customer, would our service be acceptable? Quality processes and quality services don’t always mean going with the lowest bidder. We pay for quality—for best value--there must be a change in our way of doing business. The cost is well worth it when we look at the benefits—better performance, less damage, fewer claims, longer time between maintenance, higher standards of service. The old cliché “Good enough for government work” is no longer valid. We are demanding quality, our customers are demanding quality and we’re recognizing that quality sometimes costs more but we get the best value. The early Romans had a philosophy very similar to the ninety-nine point nine percent rule. In ancient Rome, when the scaffolding was removed from a completed Roman arch, the engineer who built the arch was required by law to stand beneath it. The point was, if the arch came crashing down, the engineer would be the first to know. As a result, Roman engineers knew that the quality of their work would have a direct and personal impact on their lives. That could be the reason there are still so many ancient arches standing among Roman ruins today. Will you leave any arches standing? What we do on a day-to-day basis has a direct and personal impact on not only our own lives, but it also affects the lives of millions of people in this country and around the world. With that kind of responsibility, ninety-nine point nine percent of the time is just not good enough. I challenge you to continually pursue excellence in all that you do—achieve quality and best value in your services. JUST DO IT!! DTJ

DTJ INDEX OF ADVERTISERS American President Lines, Ltd.............................. 55 American Roll-on Roll-off Carrier (ARC).................. 2 Atlas Air............................................................... 10 Avis Budget Group............................................... 17 BCD Travel............................................................. 6 Bennett Motor Express, LLC................................... 3 Boyle Transportation, Inc........................................ 9 Central Gulf Lines, Inc.......................................... 14 Crowley Logistics, Inc.........................................4-5 CWT SatoTravel................................................... 37 Farrell Lines......................................................... 11 FedEx Government Services................................. 56

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Landstar Transportation Logistics, Inc.................. 13 Liberty Global Logistics, LLC................................ 12 LMI...................................................................... 25 Maersk Line, Limited............................................. 7 Matson Navigation Company Inc.......................... 38 mLINQS............................................................... 31 Port of San Diego................................................. 36 Sea Cube Containers........................................... 49 The Pasha Group................................................... 8 TOTE, Inc............................................................. 21 Transportation Institute........................................ 35

Cont’d from Prof. Devel. pg. 51 ing of Threats, Indicators, and Warnings between USTRANSCOM, Whole of Government, and Industry.” All of us are involved in understanding this topic and applying it to our work. LEADERSHIP AND POLICY – LEADING AND EXPLORING NEW CHALLENGES

This track expanded from 2018 with several sessions. Among the new topics is a look at the Fourth Industrial Revolution with “Future of Work & AI Digital Transformation in the Fourth Industrial Revolution.” A digital revolution is underway. Termed Industry 4.0, the future prosperity of companies will be defined by creative adoption, use, and assimilation of Artificial Intelligence (AI) and analytics across functions. Business operations are retooling as AI and analytics change partnerships, suppliers, and vendors. This paradigm shift is shaping the future of work with new leadership styles, cross-functional people-machine collaborations, and hybrid organizational cultures. The future of work involves new human-machine collaboration that challenge traditional leadership philosophies for how people are hired, managed, and organized. This session focuses on how AI and analytics spurs new approaches to leadership, talent management, and team design. Government is continuing to adapt, adjust and create policy for new situations. This is demonstrated by Category Management – Transportation & Logistics Services. The US is in the process of instituting category management across the federal government in an effort to buy smarter and more like a single enterprise. Category management refers to the business practice of buying common goods and services as an enterprise to eliminate redundancies, increase efficiency, and deliver more value and savings from the government’s acquisition programs. Teams of experts in each category of spending help agencies increase their use of common contract solutions and practices and bring decentralized spending into alignment with organized agency-and governmentlevel spending strategies by sharing market intelligence. Thank you for attending Transportation Academy 2019. See you in St. Louis again in 2020! DTJ

EXPANDING BOUNDARIES

American President Lines (APL) offers weekly U.S. Flag services linking North America to Asia, the Mediterranean, the Middle East, as well as Guam. With our proven track record and commitment to service quality and innovation, trust APL to continually expand industry boundaries to deliver mission-critical supplies and equipment to our troops, on time and on target. To find out more about how we support the U.S. military, visit www.apl.com/usflag

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In the air, on land, and at sea. We’re proud to serve those who serve. With access to more than 220 countries and territories, FedEx Express has the expertise and global connections to move your shipments quickly and reliably around the world. FedEx. Solutions That Matter.®

| Defense Transportation Journal | OCTOBER 2019